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Liquefied Natural Gas (LNG) storage in Ireland
Ireland is one of five EU member states without domestic gas storage (the Southwest Kinsale storage reservoir having ceased operation in 2017).
Ireland's current position regarding its gas reserves renders it non-compliant with the EU N-1 Infrastructure Standard regulation, i.e. the requirement that a member state must have, in the event of a disruption to the single largest gas infrastructure in the state, the capacity in its remaining infrastructure to satisfy total gas demand during a day of exceptional gas demand.
With 78% of Ireland's natural gas in 2024 coming from imports through the Moffat entry point (which consists of two interconnectors from the UK), the Government's progression of a State-led emergency gas reserve will help to address this non-compliance and meet unmet demand should significant disruption of supplies occur.
State-Led LNG Reserve
Earlier this year, Darragh O'Brien, the Minister for Climate, Energy and the Environment (the Minister) approved plans to develop a State-led LNG terminal under Action 17 of the Energy Security in Ireland to 2030 Report (published in November 2023) (the Report), which calls for a strategic gas reserve.
In furtherance of these plans, the Government's Summer Legislative Programme for 2025 referenced the preparation of the Heads for the Strategic Gas Emergency Reserve (Amendment) Bill to amend the functions of the gas system operator Gas Network Ireland (GNI) and introduce the necessary regulatory framework for an emergency Floating Storage and Regassification Unit (FSRU). In July, the Minister stated that it is expected that a Memorandum for Government seeking permission to draft the associated General Scheme for this Bill will be brought to Cabinet this year.
That same month, GNI sought market feedback via an RFI on its intention to run a procurement process for the possible private provision and operation of the Strategic Emergency Gas Reserve and FSRU, outlining that it is open to considering (i) 100% private ownership of the assets, (ii) outright ownership by GNI or (iii) ownership by way of a JV between GNI and a private party. This signalled a potential deviation from initial plans for ownership to be held by GNI on behalf of the State. No final decision on ownership structure has been made yet.
The Government has stressed that the development of this emergency LNG terminal is a transitional measure on the road to improved domestic sources of renewable energy, is for emergency use only, and does not support increased demand.
When full, the FSRU will have capacity of 170,000 cubic meters of LNG, sufficient to supply 200,000 average domestic gas customers demand for 6 months. Alternatively, the FSRU will have the ability to supply Ireland's entire gas demand for seven days and would be refilled to continue to supply the national gas network.
Shannon LNG Project
In addition to the State-led development, 2025 has been a year of significant progress in respect of the long-mooted Shannon LNG project to develop a 600MW power plant and LNG terminal on the Shannon estuary. The proposed 630-acre site also includes a planned emergency storage facility for LNG.
In March of this year, An Coimisiún Pleanála overturned its September 2023 decision (which we discussed here) and granted planning permission for the 600MW power plant.
Shannon LNG's challenge of an initial refusal was granted by Mr Justice Richard Humphreys who noted in the High Court in November 2024 that the original decision to refuse had not taken into consideration the Report's position that the absence of a major storage facility for natural gas was a risk to security of supply. In its revised decision approving the development of the facility, An Coimisiún Pleanála noted it was satisfied that the development of the plant was consistent with national climate ambitions. On 24 March 2025, An Coimisiún Pleanála withdrew its application seeking to review the High Court's November decision. In May 2025, Friends of the Irish Environment then lodged a judicial review of the approval for the power plant. This judicial review hearing is set for February 2026.
In May, Shannon LNG resubmitted its planning application in respect of the LNG facilities on the site. An Coimisiún Pleanála's date of 22 September to decide on the reactivated application in respect of the LNG facilities has been pushed out due to "the complexity of issues". In August, the Minister responded to An Coimisiún Pleanála's request to clarify the Government's policy on private LNG developments. The Minister endorsed the Report while acknowledging the need to move from fossil fuels to an electricity-based system, noting that the risk to Ireland's economy in the event of a disruption to gas supplies requires attention and reiterating that Ireland's Policy Statement on the Importation of Fracked Gas no longer remains in place following the approval of the Government's strategic gas emergency reserve. An Coimisiún Pleanála now intends to decide on the application by 13 January 2026.
Recent Developments
On 24 October 2025, the High Court lifted an order previously granted to Shannon LNG restraining the enforcement of a potential fine of over €7million from EirGrid. Shannon LNG had sought judicial review proceedings in August against EirGrid's request for the posting of increased performance security in respect of Shannon LNG's capacity contract with EirGrid relating to its proposed power plant. The substantive case is due to be heard in November. Recent media reports have indicated that Shannon LNG's parent company New Fortress Energy may require significant restructuring in light of its current debt burden.
Looking Ahead
With legislation in respect of the State's emergency LNG reserve imminent and the judicial review actions to which Shannon LNG is a party set to be heard by next February, it is anticipated that there will be further significant developments for LNG in Ireland in 2026.
Contributed by Matthew Smith
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