AQW 16204/17-22

Mr Stewart Dickson
Alliance Party
East Antrim

Tabled Date: 11/03/2021
Answered On Date: 24/03/2021
Priority Written: No

Question:
To ask the Minister for the Economy whether she will establish a de-commissioner of last resort regime in Northern Ireland similar to that in Great Britain, to ensure that major energy projects are not abandoned without appropriate decommissioning measures.

Answer:

The term ‘decommissioner of last resort’ is generally used in relation to arrangements for ensuring that offshore energy projects can be safely decommissioned at the appropriate time, for example, if the project owner/operator is unable to carry out full decommissioning due to company failure.

For offshore oil and gas projects, the decommissioning regime in Great Britain, administered by the Department of Business, Energy and Industrial Strategy (BEIS) and the Oil and Gas Authority, may require companies to establish a type of insurance bond to cover the costs of completing the decommissioning process in the event that the owner/operator does not do so. Drawing on this experience, consideration is currently being given to those arrangements which the developers of the Islandmagee gas storage project may provide, as part of the leasing arrangements with The Crown Estate for such projects, to ensure the safe decommissioning of the facility in due course.

For offshore electricity generating stations, there is no decommissioning regime in Northern Ireland and therefore no ‘decommissioner of last resort’ in that regard. Discussion has taken place with colleagues in relation to the scheme operating in Great Britain for offshore renewable energy projects and it is an issue that will need to be given careful consideration as we develop the Northern Ireland Energy Strategy, particularly if we are to pursue offshore electricity generation as part of an ambition to diversify our technology mix.