EU to Boost Ireland's Energy Security as Brexit Looms

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European Union (EU) is to help back key Irish power projects as the U.K.'s forthcoming exit (Brexit) from the Union threatens the security of the country's gas supplies.

The Union's financing mechanism the European Investment Bank (EIB) has promised to support two projects: an electricity interconnector between France and Ireland and the possible construction of a liquefied natural gas (LNG) import terminal in County Kerry.

"The EIB is very conscious that Ireland is uniquely exposed to the economic consequences of Brexit," EIB Vice President Andrew McDowell told Reuters. "The need to show tangible European support for Ireland is becoming more pressing and the EIB is part of that."

Ireland relies on the U.K for 60% of its gas imports. Once the U.K. leaves the EU, Ireland will not be allowed to negotiate a separate bilateral trade agreement, casting a shadow over its energy security.

Industrial Info reported last year on the advancement of the Celtic Interconnector project, which will connect the grids of both countries for the first time. Following five years of feasibility studies, Irish grid operator EirGrid and its French counterpart Réseau de Transport d'Électricité (RTE) signed a memorandum of understanding to move to the next stage. The 600-kilometre (km) cable will have a capacity of approximately 700 megawatts (MW), enough to power 450,000 households. Both countries believe the link will cut electricity prices for consumers and boost electricity security. For additional information, see July 27, 2016, article--France-Ireland Interconnector Powering Ahead.

The other project is a proposed LNG-receiving terminal on the Shannon Estuary near Ballylongford and Tarbert in County Kerry. The project has been stop-go for a number of years and was offloaded by key developer Hess LNG, a 50-50 joint venture owned by Hess Corporation (NYSE:HES) (New York, New York) and U.S. hydrocarbons trading and transportation company Poten & Partners Incorporated (New York) in 2016. An unnamed private investment group has taken over the proposed project and is "evaluating options." The terminal would enable Ireland to import up to 28.3 million cubic meters a day, double its current gas needs.

"Because all of our electricity and gas interconnections are with Britain, it would be irresponsible of us not to explore all other options," said Irish Energy Minister Denis Naughten. "We will be available and will assist."

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