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Dáil Éireann debate -
Tuesday, 11 Mar 1986

Vol. 364 No. 7

Ceisteanna—Questions. Oral Answers. - Natural Gas.

14.

asked the Minister for Energy the number of market and economic studies which have been carried out on the feasibility and economic viability of supplying natural gas to Kilkenny during the last three years; and if he will make a statement on the matter.

The viability of supplying natural gas to Kilkenny has been under constant review over the last few years. Further investigations, particularly in relation to the potential market in this area, have recently been carried out by BGE and I am awaiting their assessment of the present situation.

The Minister has not answered the question. How many studies were undertaken in the Kilkenny area in relation to the provision of natural gas?

The major study undertaken by consultants is the present one and that is being considered by Bord Gáis. I expect that they carried out their own studies also.

I can tell the Minister that the present study is the fifth to be undertaken in this matter. Will he agree that the conditions that obtained after the first and second studies were much more favourable than is the case now for the supply of natural gas to Kilkenny? That was because of the involvement of Smithwicks. I cannot understand the need for this range of studies. Can the Minister tell the House now if Kilkenny is to have natural gas and, if so, when.

If I am satisfied that the potential market in Kilkenny is such as to justify a natural gas project for the area, Kilkenny will have natural gas; but I am awaiting the conclusions of Bord Gáis on the basis of the latest study before making any such decision.

Would the Minister agree that because Smithwicks have opted for coal the prospect of Bord Gáis supplying natural gas to Kilkenny is now much less attractive? Can he say what is the reason for all this behind-the-doors activity? With the prospect of 700 customers, including a large industrial concern, the Minister said that the project would not be viable, so how can he expect anyone to believe that it might be viable now that the largest customer is no longer interested? The Minister should stop codding the people of Kilkenny and tell them whether they are to have natural gas. Is he keeping the news for the eve of an election?

The question of viability will relate to a large extent to how much the customer is prepared to pay for the gas.

There are 700 customers. Is the Minister aware that the only difference in terms between Bord Gáis and that largest customer was one penny per them? It does not say very much for the commonsense element that that gap could not be bridged.

I do not agree with the Deputy.

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