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Irish Mirror
Irish Mirror
National
Shauna Corr

Oil and gas firm based in tax haven Jersey lobbying Irish politicians on LNG

Decisions on Ireland’s energy future could mean the difference between a giant step towards cheaper renewables or "locking in" more, expensive gas for years to come according to charities.

While it has been widely accepted we need some gas to keep the lights on as we transition to climate-friendly energy solutions, there are real fears new fossil fuel infrastructure could set us back decades.

Ireland promised to “end new direct public support for the international unabated fossil fuel energy sector by the end of 2022, except in limited and clearly defined circumstances that are consistent with a 1.5°C warming limit” at COP26.

Read more: Ireland hasn't got enough ports that can build wind turbines needed, study finds

But the latest UN climate report found countries are still not doing enough to keep 1.5C alive.

After weeks investigating, we can reveal that, as those in power grapple with how to help us heat and light our homes while meeting legally binding climate targets, an offshore oil and gas company has been lobbying politicians here about liquefied natural gas.

LNG, of which America is a huge exporter, is marketed by fossil fuel firms as a more climate friendly ‘bridging fuel’.

While it produces less carbon dioxide than coal and oil, a report from the USA's Natural Resources Defense Council in 2020 found it “is not an effective climate strategy” as the associated infrastructure will “lock in fossil fuel dependence, making the transition to actual low-carbon and no-carbon energy even more difficult”.

That hasn’t stopped companies like Mag Mell Energy Ireland, which is owned by Predator Oil & Gas Holdings Plc, and based in tax haven Jersey.

Neither firm is listed on the register of Irish companies. Yet Mag Mell was given access to Leinster House to talk to politicians about their LNG plans before a public consultation on the Government’s “Review of the security of energy supply of Ireland’s electricity and natural gas systems” closed on Friday.

Independent rural TD, Michael Collins, emailed his Dail colleagues extending invitations to the briefing with Mag Mell chief Paul Griffiths, MD Lonny Baumgardner, consultant Michael Nolan, David O’Donnell and Paul Sweetman from Instinctif Partners who wrote Mag Mell’s White Paper titled ‘Keeping Ireland’s Energy Flowing’.

The May 2022 document, which we have seen, advocates repurposing Kinsale infrastructure to help Ireland ‘insulate itself from rising gas prices’.

Minister for Transport, Climate, Environment & Communications, Eamon Ryan, was also asked to meet the firm’s CEO Paul Griffiths.

And while DECC says “no meeting took place between Minister Ryan and Mr Griffiths” they added: “A representative from the energy section of the Department of the Environment, Climate and Communications met with Mr Griffiths.”

Climate activists spell out "Frack Off LNG" with their bodies during a mass trespass of the site of the proposed Shannon LNG fracked gas import terminal on the Shannon Estuary in north Kerry on Sunday, 7th August 2022 (Michael Higgins)

Five independent TDs from Cork southwest, Kerry, Limerick and Tipperary were pictured with Mag Mell’s chief executive Paul Griffiths in an image shared on Twitter by its MD Lonny Baumgardner on October 6.

They were deputies Michael Healy-Rae, Danny Healy-Rae, Mattie McGrath, Michael Collins and Richard O’Donoghue. None responded to our request for a comment.

Mag Mell told us they have met with “over a dozen MEPs, TDs and Senators” across Ireland about their project, while they were also a Gold Sponsor of the National Energy Summit Ireland at Croke Park in April.

While it says on predatoroilandgas.com Mag Mell made a “submission to the Draft Cork County Development Plan 2021 for public consultation” but the link to the document is broken.

Some 34 charities and environmental groups opposed any LNG in their response to the national energy consultation.

Jerry Mac Evilly, Head of Policy, Friends of the Earth said: “The energy security review must reject LNG, including state-backed, and new oil and gas exploration. It is also essential that Government decision-making fully reflects and respects climate commitments.

“This means the Government must not accept industry attempts to misinterpret energy security as simply equating to ever-more fossil fuel infrastructure.

“The real solutions are to both prevent further expansion of data centre demand and to double-down on renewables and energy efficiency.

“These measures will reduce our fossil fuel dependence, permanently enhance our security, reduce emissions and protect households from rising energy costs.”

Mag Mell CEO and shareholder, Mr Griffiths, believes there is a need for his proposed project.

He told us: “The Mag Mell project intends to make use of existing infrastructure with minimal new fixed infrastructure required, this also mitigates against concerns that Ireland is locking itself into long-term reliance on fossil fuels, undermining climate action efforts."

He also claims they can guarantee 100% frack-free LNG "likely to be sourced from existing mature providers".

Mr Griffiths declined to say where it would come from but argues that despite commitments to reduce fossil fuels, Ireland needs LNG to “help insulate Ireland from rising gas prices, scarcity of supply, and support the transition to net zero” - a view charities oppose.

“The proposed project can be operational by winter 2025 once it is given the green light,” he added.

Ireland’s Programme for Government states “as Ireland moves towards carbon neutrality, it does not make sense to develop LNG projects importing fracked gas”.

A DECC spokesperson supported that view, saying that while offshore LNG was included as an option in the energy supply review “it would not be appropriate for the development of any LNG terminals in Ireland to be permitted or proceeded with” until it is complete.

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