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    How the Corrib Gas Field Will Affect Ireland’s Energy Needs

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Summary

Ronan Deasy Managing Director of Shell Ireland on the Corrib gas project: project is important to Ireland’s energy security, different approaches could have been taken in the initial stage of the project.

by: Erica Mills

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Top Stories, Pipelines, Security of Supply, News By Country, , Ireland

How the Corrib Gas Field Will Affect Ireland’s Energy Needs

The Corrib gas project will be a milestone for Ireland when it comes on stream later this year, the Managing Director of Shell Ireland, Ronan Deasy, has said. 

Mr. Deasy, who took over as managing director in February this year, said at a conference attended by Natural Gas Europe that though the project is important to Ireland’s energy security, different approaches could have been taken in the initial stage of the project.

Since its announcement, the project has proven controversial and has been marred by protesters that have helped to significantly delay its development.

“Shell has acknowledged that more meaningful engagements and dialogue with the local community in the early stages of the development and planning was required,” Mr. Deasy said. “If that was done differently and better, perhaps Corrib would already be producing and contributing to the Irish economy many years earlier than we are here today.”

The biggest delay came with the planned initial route of the onshore section of the pipeline bring gas from the offshore field onshore.

“[That] drew the greatest opposition. There were perceived and genuine concerns around safety due to the proximity of the pipeline to local residences in the village of Rossport. Eventually, the decision was taken to reroute the onshore gas pipeline under a tidal estuary called Sruwaddacon Bay via tunnel to the Bellanaboy Bridge Gas Terminal.”

Now, at 4.9 kilometre, the tunnel is the longest gas pipeline tunnel in Europe. 

Shell is the operator of the Corrib gas field with a 45% stake; Statoil Exploration (Ireland) has 36.5% while Vermilion Energy holds the remaining 18.5%. The field, which was initially discovered in 1996 by Enterprise Energy Ireland, is a significant find for Ireland with estimated reserves of 1 trillion cubic feet. That level of reserves could prove game changing for a country that has traditionally had to rely on outside sources of gas. 

“Ireland has a heavy reliance on imported energy,” Mr. Deasy said. “Oil is the dominant force but gas plays an important element in Ireland’s energy mix, not least because approximately half the electricity used in Ireland is generated using gas. Without gas, lights could go out or be at least somewhat dimmer.

“The vast majority—over 90%—of the country’s gas is imported from the UK via two interconnectors. This is set to change quite significantly once Corrib comes on stream.” 

When Corrib goes into production—five wells are operational now with a sixth to go into production this summer—it will contribute massively to the country’s gas usage.

“The Corrib development is strategically important from an energy security perspective. Corrib has the potential to deliver more than 60% of Ireland’s gas needs (averaged over the year),” Mr. Deasy said. “In fact, on some days the entire gas needs of the country will be entirely met by Corrib.”

And gas will remain an important part of Ireland’s—and indeed the world’s—energy mix even as the use of renewable energy grows, Mr. Deasy said.

“By the 2050s, Shell’s scenario planners expect global energy consumption to double from the level at the start of the century. From a global perspective, we think that energy from renewables could rise to around 25% of the energy mix by 2050 from levels of about 13% now.

“However, fossil fuels could still provide more than two thirds of the energy mix in 2050. The current share is 80% with the rest coming from nuclear. We need all energy to meet rising demand. Renewables are crucial to the future of the energy system, but they still depend on flexible back-up when the wind doesn’t blow or the sun doesn’t shine. That’s where natural gas comes in and can be of enormous help.”