Future of the Gas Sector in Ireland

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Energy is a crucial driver of economic growth and societal prosperity. Natural gas is one of Ireland’s primary fuels for energy generation, with nearly 60 TWh of natural gas being delivered via pipelines to over 720,000 users in 2023. However, 80% of the natural gas used in Ireland is imported directly from the United Kingdom (UK), which poses energy security risks due to limited source diversity. The gas sector plays a substantial role in electrical power generation and heating in residential and non-residential sectors. The national climate objectives will significantly impact the gas sector, as it generates roughly 20% of Ireland’s annual greenhouse gas emissions (GHG) and requires a shift to Net-Zero Emissions (NZE) while at the same time maintaining affordable energy for consumers. After reviewing published government strategies, industry reports and research papers, the climate actions and renewable gas projections were analysed to investigate the future of the gas sector. The costs of biomethane and hydrogen deployment and the challenges associated with the gas sector transition are discussed, and key conclusions are drawn.

This research was undertaken as a review paper to inform wider NESC work on Energy. It was published simultaneously with Ireland’s Future Power System and Economic Resilience (NESC Council Report No.167), which you can read by clicking here.