Ireland Risks Power Outages Without Natural Gas Storage, EY Warns

Ireland is at risk of major power outages if it does not provide for natural gas storage, according to Sean Casey, EY's industrials and energy industry leader. The country relies on natural gas to generate 40% of its electricity, but has no storage or LNG terminal. Casey warns that an interruption in supply could be catastrophic for industries and businesses, and supports the use of renewable gas to aid the transition to renewable energy.

Ireland faces a significant risk of major power outages if it fails to establish natural gas storage facilities, according to Sean Casey, EY's industrials and energy industry leader. The country currently relies on natural gas to generate 40% of its electricity, yet it lacks both storage and an LNG terminal. Casey warns that any interruption in supply could be catastrophic for industries and businesses, emphasizing the need for strategic measures to mitigate this risk.

The Current Energy Landscape

Natural gas plays a crucial role in Ireland's energy mix, accounting for approximately 40% of electricity generation. However, the country's reliance on imported gas exposes it to supply chain vulnerabilities. Ireland imports 75% of its natural gas from the UK, making it sensitive to global market conditions and UK market fluctuations [1].

The Importance of Storage

Natural gas storage is vital for ensuring a stable supply during peak demand periods, particularly during colder winter months. Without adequate storage, Ireland could face significant supply disruptions, leading to potential power outages. Casey's warning underscores the critical need for the country to invest in storage solutions to safeguard its energy security.

Renewable Gas as a Transition Strategy

To address the immediate need for natural gas storage, Casey supports the use of renewable gas as a transitional solution. Renewable gas, produced from biogas or biomethane, can help reduce dependence on fossil fuels and contribute to the country's decarbonization goals. By integrating renewable gas into the energy mix, Ireland can enhance its energy resilience and prepare for a more sustainable future.

Regulatory and Market Context

The Irish energy market is highly regulated, with Gas Networks Ireland responsible for maintaining and operating the national gas grid. The company charges businesses for network and transportation services, which are added to the gas commodity rate [1]. The current regulatory framework ensures that gas prices are stable and predictable, but it also highlights the need for strategic investments in infrastructure to support the country's energy needs.

Strategic Initiatives and Investment

Energy Transfer LP (NYSE:ET), a midstream energy company, has been investing aggressively in natural gas infrastructure to capitalize on growing demand. In its Q2 2025 results, the company reported a sequential decline in adjusted EBITDA but highlighted strong operational performance across all segments [2]. Energy Transfer's strategic shift towards natural gas infrastructure, with nearly 50% of its 2025 growth capital allocated to natural gas-focused projects, demonstrates the industry's recognition of the importance of this resource.

Conclusion

The lack of natural gas storage in Ireland poses a significant risk to the country's energy security. Sean Casey's warning underscores the urgent need for strategic investments in storage facilities and the integration of renewable gas solutions. As the energy landscape continues to evolve, Ireland must prioritize these measures to ensure a stable and sustainable energy future.

References

[1] https://www.utilityfair.ie/business-energy-insights/wholesale-gas-prices-in-ireland
[2] https://za.investing.com/news/company-news/energy-transfer-q2-2025-slides-387b-ebitda-as-natural-gas-investments-accelerate-93CH-3824068