(Limerick East) asked the Minister for Industry and Energy if any plans have been communicated to his Department proposing that an oil refinery be located on the Shannon Estuary; and if he will make a statement on the matter.
2.
Ceisteanna—Questions. Oral Answers. - Shannon Estuary Oil Refinery.
1.
asked the Minister for Industry and Energy if he will make a statement on the Latsis proposal to establish an oil refinery and storage complex at Ballylongford on the Shannon Estuary.
With the permission, of the Ceann Comhairle, I propose to take Questions Nos. 1 and 2 together.
In the past two years proposals relating to two separate refinery projects in the Shannon Estuary have been communicated to my Department. The proposers have been the Greek-owned Latsis Group and Aran Energy Limited.
It has, however, been evident for some time that the recent state of the oil market, characterised by a cut-back in Middle East oil production and substantial over-capacity in refining, particularly in Europe, have adversely affected the climate for investment in new refining facilities. It is against this background that the Latsis Group have recently indicated that they do not now propose to proceed towards implementation of their plans, for the time being. I understand that the proposers of the second project. Aran Energy, are currently involved in work related to their application to Kerry County Council for planning permission.
In relation to the Latsis proposal can the Minister give any information regarding the company's storage complex proposals? While I agree that the oil supply situation is not to the advantage of the Latsis group, the question of establishing a storage complex would be of benefit to the nation. Will the Minister clarify the proposals in that regard?
I am sure the Deputy is aware that the Latsis proposal for the Shannon Estuary involving both refining and storage capacity was concerned with the availability of Saudi crude oil. I am sure the Deputy appreciates that with the big cutback in production in Saudi Arabia, and the increase in their own refining capacity, this situation has changed. The situation is that he has informed us that he does not intend to go ahead with any part of the proposal at this time.
Do I take it that the land at Ballylongford will now revert to the IDA and that it will be at their disposal in the event of another proposal coming forward from the company mentioned or some other company?
That is a separate question but the Deputy can rest assured that the IDA will keep a close watch on the developments that take place.
That is not good enough. Is the Minister aware that the land earmarked for the Latsis development is the only prime site available at the estuary for development of a refinery and storage complex? In those circumstances it is vital that the IDA continue to control that land for future development.
The position is as stated by the Deputy.
Will the Minister clarify from his records whether a firm proposal was made by Mr. Latsis to go ahead with the construction of an oil refinery at Ballylongford?
I can assure the Deputy that long discussions took place with the IDA and various communications passed between that body and the Latsis Group in relation to this.
Will the Minister confirm that the Latsis Group own the site?
That is a separate question. If the Deputy puts down a question about that matter I will deal with it.
It is a separate question and I am calling question No. 3.
I should like to ask another supplementary.
I have called the next question.
This is very unsatisfactory.
I regret that, but I have called the next question.