Further delays in the Corrib field project will leave the Republic facing a shortage of natural gas by 2008/09 as gas storage facilities come to an end, a new report has warned.
The report from the energy regulator says the amount of gas being imported into Ireland could be increased by upgrading the interconnectors with Scotland, but this could cost millions of euro.
The report itemises different reinforcement works that could be performed on these interconnectors, allowing them to pump more gas to Ireland. Depending on what works are undertaken, the cost could amount to over €200 million. This would probably have to be paid by Bord Gáis.
The report by the Commission for Energy Regulation states that delays at the Corrib field, off the coast of Mayo, would force the works to be carried out.
"The only reason that there will be any need to reinforce the main supply system is in the case when the delivery of gas from Corrib is delayed to 2009/10."
Despite this, the report claims that gas from Corrib may still be produced by the fourth quarter of 2008. "The latest figures suggest a start date in 2008, which effectively means that it will not be available to support peak gas demand until the 2008/09 winter."
Underpinning its warning is a growth in the demand for gas.
"Further growth in gas demand is likely over the forecast period," it states.
However, it says power generators sometimes use other fuels and this can push demand down for a time. But with several gas-fired stations being built, the dependence on gas as part of the Republic's total energy portfolio will rise from current levels.
In the foreword to the report it says the gas distribution system is "sufficiently robust" at present, but this could change.
It states: "Further delays or difficulties with indigenous supply sources may lead to the system in Scotland being tight for a period of time."
It says several measures may be needed to deal with this, including getting companies and people to reduce peak demand, and additional works in Scotland.
The report says a compressor station at Beattock in Scotland, which helps to compress the gas before its goes to Ireland, could be considered.
It also says Marathon has a gas storage facility near the Kinsale gas field but the ongoing viability of this facility is not guaranteed.
The report places a strong emphasis on Ireland's increased dependence on imported supplies. "Indigenous gas fields supplied over 80 per cent of the market in 1996. This position is now reversed with more than 85 per cent of the gas supply in Ireland being met by imports via the interconnectors from Scotland."
The regulator's document says a new field at Seven Heads has been found, but it has not produced the levels of gas "originally projected".
The report notes a recent announcement about a plan to build a liquified natural gas (LNG) plant in Co Clare, but says this came too late for the full impact to be considered.
