Fracked gas imported from New Mexico could be used for the proposed State-led Liquid Natural Gas (LNG) emergency terminal in Co Clare.
A high-level delegation led by the governor of New Mexico, Michelle Lujan Grisham, met Minister for Energy Darragh O’Brien, junior minister Neale Richmond and chief executive of Gas Networks Ireland (GNI) David Kelly last week to discuss the importation of US LNG.
The proposed Shannon LNG project, at Cahiracon along the Shannon estuary, will operate as an emergency reserve in the event of a major disruption to the natural gas pipelines from the UK, which provides almost 80 per cent of Ireland’s natural gas needs. It is due to come on stream in 2030.
Ireland is currently in breach of EU law by being one of only six EU countries without an emergency gas reserve.
In a statement issued after the meeting, the Independent Petroleum Association of New Mexico said “the discussions centred on establishing a long-term supply relationship as Ireland’s last domestic gasfield nears depletion.
“Irish leaders indicated that the country is prepared to seriously consider importing LNG from New Mexico, acknowledging that their energy transition will take longer than planned and emphasising the need for reliable baseload supply during this period.”
The statement said Ireland’s situation is “straightforward and urgent … what’s shifted is the candour – Irish leaders are now openly acknowledging that the energy transition will take longer than planned.
“New Mexico, producing at scale with enormous untapped capacity, is positioned to be exactly the kind of long-term partner Ireland needs.”
New Mexico is home to two of the largest shale gasfields in the United States – the San Juan Basin and the Permian Basin, which it shares with Texas.
Fracking, known more properly as hydraulic fracturing, involves drilling a well bore and pumping fracking fluid, mostly water at high pressure, to fracture the shale rock. This releases natural gases that are collected at the surface.
Fracking has been banned in most countries, including Ireland in 2017. It is regarded as environmentally harmful and contrary to many country’s climate policies. However, many US states allow it.
In 2021 the government banned the importation of fracked gas into the country pending a review into the State’s energy security.
In 2023 the government published national risk assessment on energy security highlighting that there was no emergency gas reserve despite the State’s dependence on imported natural gas.
Last year, the Government approved the Floating Storage and Regassification Unit (FSRU), a large vessel that will be able to store and transport LNG and turn it from liquid back to a gaseous state to supply the national gas network.
At the same time the ban on the importation of fracked gas was overturned.
Gas Networks Ireland envisages that the FSRU emergency facility will have enough gas to power the State for a period of seven days or 200,000 homes for six months.
In a statement, the Department of Climate, Energy and the Environment, confirmed that the “policy statement on the importation of fracked gas no longer remains in place”.
The department added that the contract to replenish the FSRU with LNG will “be an open market procurement. LNG cargoes will be sourced on the global market from LNG suppliers following a public procurement progress”.
In a statement GNI said sourcing LNG will be done on the “global market following a public procurement process”.