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Dáil Éireann debate -
Thursday, 29 May 1986

Vol. 367 No. 3

Ceisteanna—Questions. Oral Answers. - Natural Gas Policy.

4.

asked the Minister for Energy if he will publish a future gas allocation policy in view of the fact that the usage by the ESB is expected to fall by a third in 1986 and 1987.

I have no plans to publish a revised allocation policy at this time. The objective of Government allocation strategy remains the exploitation of the natural gas resource so as to maximise the benefit to the economy as a whole.

The position regarding the supply of natural gas to the ESB is that, at the board's request, its gas allocation was rescheduled so as to enable it to take the bulk of the allocation by the end of 1987, when the Moneypoint project would be operational. It was always recognised, therefore, that gas takes by the ESB would drop from this year on.

An examination of the long term development of the gas industry is underway and depletion strategy for the balance of the reserves will be decided in the light of this review.

Would the Minister accept that the allocation of natural gas last year was, 65 per cent to the ESB, 22 per cent to NET, 8 per cent to Dublin Gas, 1 per cent to the Cork Gas Company and about 4 per cent to industrial users? Are those figures roughly correct and would he agree that the fall-off from the ESB will be one-third lower in 1986 than 1985 and in 1986-87 there will be another one-third reduction, so that by the end of 1987 it will be a zero allocation to the ESB? What plans has he to market the additional gas that is there to be sold? Will he accept that there will be a drastic reduction in Exchequer revenue from An Bord Gáis as a result of the big drop-off in demand by the ESB?

The figures used by the former Minister for Energy seem, by and large, to be accurate. However, since the Deputy left office certain discussions have taken place with the ESB in relation to future usage. I do not believe the drop-off in ESB usage will be as large as the Deputy mentioned. At present discussions are under way between my Department and the ESB in relation to the allocation for next year and future years, but at this stage it would be premature to be more specific because a final decision has not been taken in relation to the amount of future gas allocations to the ESB. That decision will not be made until the current allocation policy review has been completed.

The reason there may not be such a large drop-off as I indicated — approximately one-third in 1986 and one-third in 1987 — is that Moneypoint is due to come on-stream. Will the Minister confirm that Moneypoint is on schedule and that the various stages will come on-stream as indicated earlier?

Moneypoint is on schedule and will come on stream. What figure did the Deputy use in relation to the drop-off?

One-third in 1986 and one-third in 1987.

I do not think it will be as much as that, but obviously it is not possible to give concrete figures until the discussions have been completed with the ESB and until the allocation policy review has been completed. The other obvious consideration is that the ESB have the gas-powered stations and they are a national asset. We should ensure we can use them in the overall energy programme.

Will the Minister state if natural gas will be made available to industry as requested by the Confederation of Irish Industry?

Sin ceist eile.

Will the Minister keep that in mind?

Yes, I have no difficulty about that.

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