This week, Minister Darragh O'Brien received government approval to proceed with the development of a state-led liquefied natural gas (LNG) terminal.

The decision has been heavily criticised by environmental organisations, who argue that it will lock the state into continued reliance on fossil fuel gas.

However, the reality is that Ireland will remain heavily dependent on natural gas for decades the government struggles to increase its renewable energy capacity.

Staggered rollout of renewables

Ireland has ambitious plans to rapidly develop onshore and offshore wind farms, solar farms, and anaerobic digestion plants in a bid to reduce its reliance on fossil fuels. By 2030, 34% of our total energy use must come from renewable energy.

Progress has been slow, and the country is struggling to generate enough momentum to meet these targets.

New wind farms, in particular, have faced difficulties securing planning permission. Solar farms, despite a relatively high approval rate, are encountering growing community opposition. At a minimum, most projects are expected to be appealed to An Bord Pleanála, leading to further delays in their rollout.

The industry remains sceptical about whether any new offshore wind farms will be operational by 2030, let alone meeting the 7GW target.

Ireland is also set to miss its biomethane target, as most AD plants are either stuck in the planning system or not being built due to the absence of a credible business model for these developments.

While some changes introduced in the new Planning and Development Act will be helpful, the industry argues that they do not go far enough. Moreover, planning issues are only one part of the challenge facing the rollout of renewables. Other barriers include electricity grid access, costly gas grid connections, delayed licensing, grid constraints and market uncertainty.

The result is that currently only around 16% of our total energy comes from renewables, meaning our 2030 targets are looking increasingly unachievable.

Natural gas supply

Ireland remains heavily reliant on natural gas for its energy needs. In 2024, natural gas accounted for 41% of the country’s electricity generation.

Currently, Ireland's natural gas supply comes from a combination of domestic production from the Corrib Gas Field and imports via pipeline from Scotland.

However, the Corrib Gas Field is expected to be depleted by the early 2030s, leaving Ireland almost entirely dependent on natural gas imports from the UK.

A small amount may also be supplied by indigenous biomethane, but this is unlikely to significantly reduce Ireland’s reliance on imported gas.

Ireland is one of five EU member states without domestic gas storage. Therefore, the country faces considerable risk in the event of damage to one or both of its subsea gas interconnectors.

Alternative supply

While there have been efforts to develop commercial LNG terminals and secure drilling licences for known gas fields off the coast of Ireland, these have been refused.

However, the government has stated that delivering a gas reserve is critical to Ireland’s energy security and will, therefore, undertake the projects itself.

The emergency reserve will take the form of a Floating Storage and Regasification Unit (FSRU), which will be owned on behalf of the State by the system operator, Gas Networks Ireland (GNI).

The FSRU will be moored at a purpose-built jetty. The chosen location must be a coastal site suitable for development, with access to the gas network and sheltered deep-sea access.

Only a limited number of sites in Ireland are likely to meet the required conditions for berthing a transitional FSRU.

When full, the FSRU will have a capacity of 170,000 cubic metres of LNG, sufficient to supply Ireland’s entire gas demand for seven days.