asked the Minister for Energy if he has noted the recommendation contained in the EEC development plan for Border areas that spurs be extended from the Dublin-Belfast natural gas main to Monaghan and Armagh; and if so, the provision he has made for that extension in talks with the Northern authorities.
Ceisteanna—Questions. Oral Answers. - Natural Gas.
1.
I have noted the recommendation in the EEC's Economic and Social Committee report in regard to spur-lines in the north-east region including Monaghan. It is my intention that the design of the proposed Northern pipeline will include provision for offtakes at a number of points.
However, the prospects and time-frame for extensions to viable demand centres close to the pipeline will, as is recommended in the EEC report, depend on the economic and technical feasibility of such projects, as well as on overall strategies relating to the depletion of the gas reservoir. The question of supply for Armagh is, of course, a matter for the Northern Ireland authorities.
Has there been a study conducted of the potential of that area for supplies? Would the Minister not agree that that EEC report recommended that natural gas was essential for the development of that region?
I can assure the Deputy that in the time-frame and within the overall policy relating to the utilisation of gas all considerations in that area as well as in the remainder of the country — all areas close to the spur-line — will be taken into account.
Would the Minister agree that, in regard to the roads plan and some others, seemingly the EEC were content on going up along the east coast and across to Derry. Would the Minister not agree that this should be closely investigated to ensure that that would not be the trend in regard to this gas pipeline? That was the trend in the roads development plan and did not at all recognise the central part of Ulster or the north-eastern area.
I was trying to assure the Deputy that we will be taking into account the central part of the country. Obviously the initial design is for the pipeline to go on to Belfast with a projected pipeline on to Derry. Given that further studies must be undertaken I can assure the Deputy that we will ensure that all parts of the country where there is usage for the gas will be given full consideration.
2.
asked the Minister for Energy if any definite decision has been made on the route for the Dublin to Belfast gas pipeline.
The target date for completion of the natural gas pipeline from Dublin to the Border is October 1985.
Bord Gáis Éireann have undertaken a detailed analysis of the optimum route for the pipeline to the Border, and this is at present under discussion between them and other relevant authorities.
Does the route that has been determined include connections or spurs to Drogheda and Dundalk in particular?
That would not seem to arise on this question which is about the time.
It is about the route, Sir.
As I am sure the Deputy is aware, the first phase of the development plan is in relation to the Dublin ring mains and the second, more extensive development is from Dublin to the Border. That has been the subject of detailed analysis by Bord Gáis Éireann. The straight line route from Abbottstown to Dundalk and then on to the Border crossing has been suggested as the optimum route for the pipe. No decisions have been taken in relation to spurs at this time.
Would that straight line route from Abbottstown to the Border not pass very close to both Drogheda and Dundalk?
Yes, very close.
Will the Minister give the House an assurance, therefore, that those two towns will have connections at a very early date as soon as the main pipe is laid by October 1985?
I can say to the Deputy that it is too early at this stage to give any details of the spur-lines or the timings of them. Obviously the object is to have maximum utility and, given the proximity of these towns, I can assure the Deputy that arrangements will be made to have gas supplies for those towns as quickly as possible.
What is the present position in that regard with the proposed contract with Premier Periclase Limited in Drogheda who would be major users of gas and who are very dependent on getting it at the earliest possible date?
That is very definitely a separate question and I do not have the information at hand.
I am sure the Minister must be well aware that the whole thing has become unstuck in recent months. Would he not agree that that is regrettable?
Will the natural gas be made available as the work on the pipeline proceeds at the various points along the way where it would be possible to make it available? Will that be done?
As I said to the Deputy in reply to his original question, the completion date is October 1985. I do not have to hand information as to the actual technical availability of gas as the pipe is laid but I can get that information for the Deputy and give him a full briefing on it.
3.
asked the Minister for Energy if he will consider setting up a co-ordinating body in County Louth to prepare for the advent of natural gas to the area and the Dublin to Belfast gas line.
The agency which has been established by the Oireachtas to provide advice in relation to natural supplies is Bord Gáis Éireann. Groups who are interested in the distribution of natural gas in the area should, therefore, contact BGE who will advise them on the planning studies necessary to establish the viability of individual projects.
Would the Minister not think it would be advisable to have proper co-ordination of the necessary plans for the usage of the natural gas in order to ascertain the various industries which would benefit most from its availability. Furthermore, for the normal network of piping for domestic supplies along the way would the Minister not agree it would be necessary to have a co-ordinating body in order to ensure that they are all at one in relation to it?
That is the function of Bord Gáis Éireann. They were established by the Oireachtas to provide advice in relation to natural gas supplies. In this instance I would not like to see another co-ordinating body. Bord Gáis Éireann were set up with this specific function, they are in a position to give the advice and it would be better that we allow them to do so.
4.
asked the Minister for Energy if he will instruct An Bord Gáis to make as a priority the availability of natural gas to the food manufacturing industry.
As part of the phased development of the natural gas market, it is intended to make natural gas available to industries located in proximity to the gas transmission network. In line with this policy, applications from firms involved in the food manufacturing industry will be considered by Bord Gáis Éireann. I would emphasise, however, that the prospects and timing of a supply will be subject to the technical and financial feasibility of individual projects.
Would the Minister tell us when it is proposed to make gas available to firms in proximity to the pipelines? We have had a pipeline from the shore into Cork for quite a number of years now and we have had a pipeline from Cork to Dublin for, I think, the past 18 months to two years. With the exception of a few industries in, I think, Little Island in Cork, virtually no other industries have got connections to natural gas although many of them are very close to the pipeline. Therefore, when the Minister says it is the intention to make it available, can he tell us when it will be made available because Bord Gáis Éireann have done little or nothing so far as making it available to individual firms is concerned?
The primary thrust of the natural gas utilisation policy has been and is to develop as far as possible premium domestic markets and commercial markets. Under the pricing and allocation policy which has recently been prepared by Bord Gáis Éireann bulk gas will be sold to industries which are located in proximity to the pipeline. It is an on-going matter. There is nothing to stop the board and the particular industries interested in the supply of gas setting up their contracts and getting on with it.
Is the Minister aware that in regard to the drink manufacturing industry — which is akin to food manufacture — Guinness in Dublin had a contract with Bord Gáis Éireann to be supplied with natural gas in February 1983? We are now in May 1984 and they still have not got a connection although they would be very substantial users of the gas in an optimum way; similarly with other companies where arrangements were made, such as Smithwicks of Kilkenny, The Irish Glass Bottle Co., and various others. What is the reason for this exceptional delay and the fact that after several years Bord Gáis Éireann have not delivered gas to any of these people who badly need it?
Question No. 5.
No answer?
I am not claiming any credit for the delays caused in 1983 when the Deputy and his party were in power.
It must seem a long time since the Minister came to power but he was there prior to 1983. He chooses not to reply.
I have ruled that they are separate questions. They are obviously so.
They are all relating to manufacturing industry.
They are, but they are specific, detailed questions about detailed companies and the Minister might not have the information with him.
Could he tell us in respect of the food manufacturing industry when the first food manufacturing plant in Ireland will get natural gas?
A food manufacturing plant and Bord Gáis Éireann have signed a contract. It is a matter for the food manufacturing plant to satisfy the board. The Deputy is aware that putting deadlines on these things is not in the best interests of the Government where contracts have to be negotiated and the best price for gas has to be achieved.
Will natural gas be made available to ESB generating stations? I have in mind the generating station at Tarbert in County Kerry.
This question is about food manufacturing.
He will not do anything for Tarbert.
The Minister has an interest since it is in his constituency.
5.
asked the Minister for Energy if he will examine the possibility of utilising natural gas for fruit and vegetable growing.
6.
asked the Minister for Energy if he is aware of the considerable potential that exists for the development of the horticultural industry along the east coast with the advent of natural gas; and if he will ensure that it is made available to the industry.
I propose to take Questions Nos. 5 and 6 together.
Bord Gáis Éireann are currently examining the feasibility of using natural gas as a fuel source for the market gardening and horticultural industry in north County Dublin. The prospects for supplying natural gas to the industry in this area will be assessed in the light of this study, the results of which should be available shortly. If growers in other locations within pipeline catchment areas have projects in mind, they should communicate with Bord Gáis Éireann.
Would the Minister agree that we are not fully utilising the gas supply? The Dutch have monopolised the European market due to the availability of natural gas. We have hundreds of acres of unheated glasshouses which are in use for only a few months each year. We are importing about 8,000 tonnes of tomatoes and there is a market in Northern Ireland for another 6,000 tonnes. There is massive employment potential and it is regrettable that investigations have not been carried out in view of the benefits of import substitution in the field of horticulture.
I am trying to be helpful to the Deputy. I have stated that the study is about to be completed. It would be short-sighted to undertake distribution without having full studies carried out. There is obviously an area in the greenhouse belt of north County Dublin, a substantial load region, which would be quite suitable. Other regions will also be looked at. It is important to have the homework done before we carry out the distribution of the gas supply. I accept what the Deputy says about the full utilisation of the available supply.
Recognising that the Minister has said there is considerable potential for job creation in this area, it must be pointed out that an important aspect is the price at which the gas would be made available. Would the Minister give an undertaking to supply gas at a price which would allow the glasshouse industry to become properly established again and expand so as to achieve the maximum job creation?
The intention would be where possible to ensure that the gas supply would be made available at competitive prices.
Why is it necessary to have a feasibility study as to suitability of natural gas for horticultural purposes when it is well known in every country in Europe which has natural gas that it is extremely suitable for these purposes?
Many aspects of this possible project must be looked at, including the distribution of users, existing fuel usage, suitability for conversion of equipment at present in use, the question of efficiency and the potential fuel use at higher efficiency levels. There is justification for having a study carried out because in time I would rather see the project being successful. The study will be completed shortly and we can then get on with the project.
The Minister referred to north County Dublin growers. How soon does he think this supply might be available to them? It is vital to their continued existence.
It is difficult to put a time-scale on it. I am fully aware of the concern which has been voiced by the growers, given the existing systems which have been shown to be inefficient and costly. We will move with all possible haste in bringing this forward.
Would that mean this year or next year.
Given that the pipeline is not completed, we are probably talking about next year.
7.
asked the Minister for Energy the proposed life of the Kinsale gas field; and if he will make a statement on the matter.
The life expectancy of the Kinsale Head field will be determined by the rate at which the recoverable reserves of gas in place will be depleted. In general these are expected to last until at least the end of the century.
Does the reply mean that there is only 16 years' life now left in the gas field while the estimate a year ago was that it would last for 25 years?
I am sure the Deputy fully understands that there are many variables as to the off-take of gas. The answer is farmed to give precise information and we are saying it will last at least until the end of the century while there is a possibility it will last longer, depending on the off-take. The gas reserves of the Kinsale field were upgraded from 1 to 1.353 trillion cubic feet in 1980. Given that fact, we can comfortably say there will be gas there until the end of the century and possibly for a number of years after that, obviously depending on the variables and the amount of gas taken off.
Is it intended in the next year or so to reduce the rate of depletion, particularly if the amount of gas going to the ESB is reduced, as appears to be the intention?
Yes. There will be a reduction of the off-load to the ESB but that will be balanced out by the amount of gas going to Northern Ireland and the development of the pipeline elsewhere. There is a question of balance between the present off-take, the future expansion for industrial use and the whole question of the long-term off-take. I can safely say the supply will not expire before the end of the century and could last for a number of years after that.
When is it proposed to reduce considerably the quantity of gas being used by the ESB?
Between now and 1988 there will be a considerable reduction.
Would that not more than compensate for any additional usage in cities, in industry or in Northern Ireland?
There is a balancing factor between those.