A £400million natural gas storage site is to be built deep beneath a lough in Northern Ireland.
The island’s first energy bank at Larne Lough, north-east of Belfast, will hold 60 days’ supply and guard against steep price rises caused by international market volatility. The gas will be contained in salt caverns a mile under the seabed.
Unlike other developed economies Northern Ireland does not have significant energy storage and depends wholly on gas imports to meet its needs.
When energy prices significantly rise, this bank can be used to supply cheaper gas and then the bank can buy in cheaper gas later.
It would also be used when installed wind power is not of sufficient strength.
Northern Ireland’s environment minister Alex Attwood said: “This security of supply of energy will be a significant step forward in the way we manage our energy sector. North Sea gas supplies are declining steeply and this facility will make a significant contribution to the security of gas supplies for the whole island of Ireland and indeed for Britain.
“Further, gas storage has the potential to reduce volatility in energy prices – gas can be purchased for storage when prices are low for use or sale when prices are higher. This is important for Northern Ireland’s future economic development.
“This project will see a major economic boost to the area. There is no doubt that constructing storage for 500 million cubic metres of gas a mile below the sea, will create construction and longer term jobs.
