Page 10 - GLNG Week 26

GLNG COMMENTARY GLNG

The government’s
opposition to imports of
shale gas could spell an
end to at least two of
the LNG import projects
underway in Ireland.

The IOOA argues that by preventing new Opposing imports
discoveries from being made, Ireland will rely The government also opposes imports of shale
ever more on imports, which results in more gas, which could spell an end to at least two of
emissions because of the distances these supplies the LNG import projects underway in Ireland.
must cross. “We do not support the importation of
“In addition, the measure will deny the west fracked gas and shall develop a policy statement
coast of Ireland significant investment from this to establish that approach,” the government said
industry,” Johnston went on. “We are the only in its programme. “As Ireland moves towards
country in the world as reliant on energy imports carbon neutrality, we do not believe that it makes
to introduce a ban like this.” sense to develop LNG gas import terminals
There has been growing antipathy to importing fracked gas.”
upstream development in Europe, which already US-based LNG exporter New Fortress
relies to a great extent on oil and gas imports. Energy is already struggling to make headway
A number of countries have taken steps to at the 5bn cubic metre per year Shannon regas-
curtail oil and gas production, including by ification project, because of opposition from
banning the use of hydraulic fracturing. France environmentalists. The government said it
went as far as to pass a law in 2017 banning oil would exclude the project from the EU’s 2021 The government’s
and gas production altogether by 2040 – a largely list of infrastructure projects of common inter-
symbolic gesture as the country is 99% reliant on est (PCIs), which can gain access to grants and programme
imports. But in Ireland, the ending of gas explo- other support. notably does
ration is not symbolic. Another venture in hot water is the 4 bcm
Irish oil and gas explorers have had a diffi- per year Inisfree floating LNG (FLNG) import not contain any
cult time over the past year. Last August, the project, proposed by US developer NextDecade,
then-government prevented a controversial which would take gas from the company’s Rio measures for
bill brought up by Ireland’s People Before Profit Grande export terminal in Texas. London-listed
(PBP) Party that would have blocked the issue firm Predator Oil & Gas also wants to build an reducing Ireland’s
of new oil and gas drilling permits. The govern- Irish LNG terminal, but has stressed that it will gas usage.
ment said the bill entailed losses from obliga- not take shale gas, without specifying the origin
tions to existing permit holders, and potential of supplies it will receive.
legal pay-outs if operators challenged the The government’s programme notably does
legislation. not contain any measures for reducing Ireland’s
However, former Prime Minister Leo gas usage, and here lies its key flaw. While closing
Varadkar went on to announce a ban on new the door on domestic supply and opposing new
oil licences in September. The share prices import infrastructure, Ireland risks making itself
of oil-focused operators such as Providence increasingly reliant on a single delivery route
Resources and Lansdowne Oil & Gas plunged from the UK for its gas. This not only presents
on the news. And now the new government has supply risks but will also drive up the cost of Ire-
taken aim at gas. land’s energy.™

P10 www. NEWSBASE .com Week 26 03•July•2020