Fears of gas rationing in Ireland grow following EU call to cut back usage

The Government may be forced to ration natural gas this winter following an EU call to cut consumption of the fuel, energy industry figures fear.

The European Commission called on member states to cut natural gas consumption by 15 per cent over the next eight months as Russia threatens to “weaponise supplies” in retaliation for EU sanctions sparked by its invasion of Ukraine.

The measure put forward by the European Commission includes a mandatory trigger if the situation worsens and voluntary curbs are insufficient.

[ EU proposes 15% cut in gas consumption due to Russian supply concern ]

[ EU proposal for 15% less gas usage gets guarded response from State ]

The Department of Environment, Climate and Communications has already confirmed that “aggressive demand management” is among the contingencies that a Government energy security emergency group is considering should Russia cut supplies to Europe.

IDA gives Intel €30m in aid package

---

How insurance reforms are bringing stability and reducing costs in a contentious claims environment

---

An attempt to buy the next election with a giveaway budget would be a gross miscalculation

---

The outlook for interest rate cuts is changing - so should Irish borrowers be worried?

---

One senior energy industry figure warned that the Republic and EU could find themselves in “uncharted territory” this winter should Russia shut or limit flows through the Nord Stream line that supplies about 40 per cent of Europe’s natural gas.

“If Vladimir Putin cuts back the supply, there simply would not be enough gas for Europe to operate as it needs to,” said the source. “There will have to be some sort of gas rationing.”

Russian gas

The industry figure dismissed as lazy Government statements that the Republic did not depend heavily on Russian gas.

“There is a limited pool of gas in Europe on any one day, that is why prices are so high,” the source added.

Another suggested that the Government was “praying for a mild winter” to avoid making tough decisions on managing gas demand.

The Republic and North import 75 per cent of their natural gas via a pipeline running from Moffat in Scotland. The fuel comes mainly from the UK, North Sea and Norway. The Corrib field off the west coast supplies the balance.

About half of Irish electricity is generated by burning gas, with coal, oil and renewables supplying the rest.

LNG imports

Europe also faces pressure on liquid natural gas (LNG) imports from the US and Middle East. Asian demand for this is picking up while the autumn hurricane season could hinder transatlantic shipments.

A department spokesman acknowledged that a cut-off of Russian gas would be difficult for Europe to manage.

He added that the emergency group, made up of the Departments of Environment and Enterprise, the National Oil Reserves Agency, the Commission for Regulation of Utilities, Gas Networks Ireland and Eirgrid, was working intensively with the European Commission and other member states as a consequence.

“The European Commission is actively engaging with other countries to ensure sufficient and timely supply of natural gas to the EU from diverse sources across the globe to avoid supply shocks, including those that result from disruptions,” the spokesman said.

A statement from the Commission for the Regulation of Utilities (CRU), responsible for energy security in the Republic, said the emergency group would identify and implement appropriate gas demand reduction measures that the State could take in line with the EU plan.

Europe’s call came as Russian president Vladimir Putin said that gas supplies would resume via Nord Stream – recently shut down for maintenance – would resume but remain tightly curbed.

Russia has cut supplies through Nord Stream and is demanding the return of a turbine that forms part of the pipeline that had been send to Canada for maintenance. Bloomberg reported on Wednesday that the part was on its way back following “frantic diplomatic efforts by Germany”, where the pipeline connects to the European network.