Vol. 384 No. 7
asked the Minister for Energy the estimated remaining reserves of natural gas in the Kinsale field, County Cork, and its estimated life expectancy at present usage rates; the latest information available to his Department on other possible discoveries of natural gas in Irish territory; and if he will make a statement on the matter.
30.
asked the Minister for Energy if he will make a statement indicating the latest estimates of recoverable reserves of gas at the Kinsale field, County Cork, with comparable figures for the last two years for which figures are available.
I propose to take Questions Nos. 16 and 30 together.
The latest estimate of recoverable reserves for the Kinsale Head gas field, calculated by my Department on the basis of 1987 data, is 1.47 trillion cubic feet. The 1988 figure has not yet been calculated. In 1986 and 1985 the recoverable reserves were estimated at 1.45 trillion cubic feet and 1.44 trillion cubic feet respectively. These calculations reflect a slight year-on-year increase in the estimate of recoverable reserves in the field with the 1987 figure being greater than the 1985 estimate by some 2 per cent, although some scope for margin of error must be borne in mind.
At current offtake levels of 60 billion cubic feet per annum the field has a life expectancy of some 15 years. The agreement with Marathon, which was announced on 22 July 1988, provides, inter alia, for increased levels of offtake. The formal contract giving effect to this agreement was signed by me on 22 November 1988.
On the basis of data analysis and discussions with exploration companies having interests in the Irish offshore, my Department are aware of a number of potentially gas-bearing structures which remain to be explored. Only by drilling will this potential be adequately assessed. I am confident that the drilling programme which we have arranged with Marathon, together with the exploration activities of other companies, will substantially achieve that object.
Can the Minister give details of the price being paid for the extra offtake? If he cannot give that information, can he clarify whether the price at which the ESB are purchasing natural gas is dearer than the cost of heavy fuel oil?
We are in the same league as in the case of the previous question. It has never been the practice to disclose to the House detailed confidential matters of a commercial nature. The first agreement was reached with Marathon when the Deputy's party were in power and the same practice was observed. We have to ensure that we protect the interests of Bord Gáis in all this. It is not possible to disclose those details.
Is it not the case that this is a public resource and that the public have a right to know whether the Minister's decision to run down our gas resource in Kinsale faster than previously is a sensible decision? The Minister is unwilling to give the information needed to assess that.
If we take the global situation into account, we are trying to ensure that we have the best possibility of another find. Secondly, we want to continue down the road of greater reliance on natural indigenous energy resources. Thirdly, we are talking these days in terms of environmental considerations. Surely it is practical to use this indigenous natural resource on an expanding basis, where possible, for economic and environmental reasons. The Deputy will have to trust us on the detail.
The whole issue——
Sorry, Deputy Bruton. You must obey the Chair. I wanted to call a representative of The Workers' Party earlier.
My supplementary question to the Minister was based on more or less the same point made by Deputy Bruton. I was a member of Cork County Council who were very much involved when the planning of the Kinsale gas field was being undertaken by Marathon. It was always stated that such information would be made available. Would the Minister agree that it is not in the interests of the people of this State that Marathon have an involvement in the Kinsale gas field? There is a question as to whether Marathon have been doing better than they should have been doing. The gas is only a little distance off the coast of Kinsale and it is only right and proper that we should know what price is being paid to Marathon.
This is repetition.
If the Minister is not proposing to answer Deputy Sherlock's question, I would ask whether there have been any preliminary or other indications given to the Government that there are likely to be other discoveries made in the Irish Sea or elsewhere? In that event or in the event that there are no such guarantees, is the Minister making other arrangements or seeking a link-up to a European grid for the continued supply of natural gas to consumers here?
I am not able to read into the future and predict what will happen. There is a certain degree of confidence that another find is possible. The question of availing of supplies from the Continent is very far down the list of priorities.
It is good that at last the problem in relation to Marathon and the blocks they control in the Celtic Sea has been resolved. Why was there such a delay between the announcement of the agreement in July and the signing of the agreement only last week? Can the Minister give details of the drilling commitments that Marathon have entered into?
With regard to the second part of the question, I do not have that detail available to me at present but I will arrange to let the Deputy have it.
Surely it must be a fundamental part of the agreement.
With regard to the first part of the question, these negotiations were more protracted than originally envisaged and there were a number of outstanding matters to be finalised, particularly a major claim by Marathon which was removed in the context of the final negotiations. The final solution was acceptable and it was better to defer it until we were satisfied that we were able to extract the best possible arrangement in the interests of the Government.
So the announcement in July was premature.
