Gas
Northern Ireland gas industry
Natural gas was first introduced to Northern Ireland in 1996 via the undersea gas pipeline from Scotland. The high pressure gas transmission network here is operated by two companies, Mutual Energy and Gas Networks Ireland (UK). There are three local gas distribution network areas operated by Phoenix Energy (Greater Belfast); Firmus Energy (‘Ten Towns’) and Evolve (Gas to the West). By March 2024, there were approximately 327,2651 Northern Ireland homes and businesses connected to gas across the three distribution networks.
1 These figures have been taken from the Utility Regulator’s Retail Market Monitoring Quarterly Transparency Report, Quarter 1: 01 January to 31 March 2024 published on 12 June 2024.
Path to Net Zero Energy
The Energy Strategy for Northern Ireland “The Path to Net Zero Energy”, published on 16 December 2021, recognises natural gas as a transition fuel on the pathway to net zero carbon. Currently, almost two out of every three homes in Northern Ireland are still heated by oil. In the short-term, converting properties from oil to natural gas can result in at least 26% carbon savings. However, the strategy recognises that gas decarbonisation must be achieved in order to address climate change issues and meet our net zero goals.
The Climate Change Act (NI) 2022 imposes a duty on all Northern Ireland departments to ensure that our net emissions for the year 2050 are at least 100% lower than baseline. To ensure steady progress towards this goal, we are required to set targets for 2030 and 2040 which are consistent with achieving net zero by 2050. This will require reducing our use of natural gas and moving, where possible, towards green gases.
Biomethane
Given Northern Ireland’s strong agricultural and agri-food base, there is considerable potential for locally produced biomethane. Biomethane could help us to become self-sufficient in affordable renewable energy and contribute to delivering the carbon emission reduction targets in the Climate Change Act. A key milestone was reached in November 2023 with the first injection of biomethane into the gas network at Dungannon.
Our challenge is to develop an effective policy framework which could unlock the biomethane economy and help the sector to become economically viable without long-term subsidies. In May 2024, the department issued a call for evidence, to establish the cost of producing biomethane and locally options for developing the industry in NI, which closed on 23 August 2024.
Responses will help to shape future agricultural and energy policy which DfE will co-design with DAERA for the production and use of biomethane.
Hydrogen
The Energy Strategy also emphases the role hydrogen could play in helping us to reach net zero targets. Using renewable energy, such as electricity generated by wind turbines, Northern Ireland can produce green hydrogen at scale, with gaseous hydrogen and its derivatives (e.g. eFuels where green hydrogen is combined with biogenic CO2 to produce synthetic fuels such as eMethanol or eDiesel) contributing to decarbonisation across sectors such as transport, heat, power and providing flexibility in our energy networks.
To support the UK Hydrogen Strategy, work is under way this year to publish a consultation on a low carbon hydrogen policy for Northern Ireland and to explore how we can play a role in the emerging world-wide hydrogen economy.
Cooperation
The Department for the Economy is continuing to work closely with the Utility Regulator and the gas industry on decarbonisation initiatives, as well as on ensuring that energy policy and legislative requirements are delivered in Northern Ireland as our energy systems evolve towards net zero by 2050.
There is significant liaison with the Department for Energy Security and Net Zero (DESNZ) in London, and contact with the Department of the Environment, Climate and Communications (DECC) in Dublin, in relation to a range of gas market issues, including security of supply.
The department also continues to engage with other Northern Ireland departments, including DAERA and other stakeholders, in relation to actions in support of decarbonisation of the gas network and wider opportunities in the production of biomethane.
Gas legislation
The overall legislative framework for the gas industry in Northern Ireland is provided through primary legislation in the Gas (Northern Ireland) Order 1996 and the Energy (Northern Ireland) Order 2003, which have been significantly amended in compliance with EU legislation and, more recently, to take account of EU exit. There are also primary legislation provisions for gas under the Energy Act (Northern Ireland) 2011.
DfE also makes subordinate legislation under powers provided within the primary legislation for gas and this has included several Gas (Designation of Pipelines) Orders, the Gas (Applications for Licences and Extensions Regulations (NI) 1996, the Gas (Supplier of Last Resort) Regulations (NI) 2009 and the Gas (Individual Standards of Performance) Regulations (NI) 2014.
Gas-related legislation is published on GOV.UK website
Gas licences
Gas licences (conveyance, storage and supply of methane gas) are granted by the Utility Regulator under Article 8 of the Gas (Northern Ireland) Order 1996.
Information on the procedures governing applications for the granting of gas licences can be accessed at the Utility Regulator (UR) website at Gas licences - UR website
Gas wayleaves
The procedures governing the grant by the department of necessary (or compulsory) wayleaves for the installation or retention of gas pipelines are contained in paragraphs 10-12 of Schedule 3 to the Gas (Northern Ireland) Order 1996.
Guidance:
For information about how DfE processes any personal data in connection with gas necessary wayleave applications and gas tree cutting applications, see our privacy notice: