RE: IAE report - energy security review27 Oct 2022 08:54
Example 3 Supply mitigation option using Southwest Kinsale reservoir
The small Kinsale Southwest Lobe gas field was developed, as a storage facility, by Marathon, for BGE in 2002. At the time output from the main Kinsale field was declining, Ireland’s gas imports were increasing and were all supplied through a single pipeline in Scotland. The development of the storage facility offered increased gas supply security to BGE. The field contained an estimated 1.0 billion m3 of natural gas and was to be operated at between 100% and 83 % of full storage capacity, to maintain a relatively high gas withdrawal capability.
The EU Directive (on security of gas supply) was transposed into Irish law by SI No 697 of 2007. The main provisions of the SI may be summarised as follows
• The Commission on Energy Regulation (later the Commission for Regulation of Utilities) is responsible for monitoring and protecting the security of Ireland’s gas supplies;
• The CER is responsible for establishing policies to ensure adequate levels of security of Supply
The gas in Ireland’s only gas storage facility was ‘blown down’ i.e., fully used, when the abandonment of the Kinsale complex was planned. This was completed in 2022, following Departmental approval, with the removal of the offshore production platforms and the onshore gas processing facility. This proposal is to resurrect the storage facility on the basis that it could meet the gas requirement for 85% of secured gas supplies.
In reality Gas Networks Ireland project an Avg. Peak Day Demand of 320GWh/d or 32 million m3/day in the period to 2030. The Southwest Kinsale storage facility delivered 4 million m3/day when full and this dropped by 33% when storage capacity dropped to 83%, its cushion gas level. The investment requirement to reinject the cushion gas, necessary to reactivate the facility, would be €1.5Bn, alone, at current Dutch TTF month ahead gas prices of €175/MWh.
DECC’s consultation document describes this proposal, in terms of feasibility of implementation, as “possible but challenging by 2025”. Given the fact that the Kinsale Field has been abandoned, this is a totally unrealistic assessment and shows a complete lack of understanding about both the Kinsale Field, the challenges associated with a major offshore gas development in Ireland and of the financial implications.
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