asked the Minister for Energy if the discovery of further gas reserves alters the economics of a gas interconnector.
Written Answers. - New Gas Reserves.
26.
This Government has, of course, always favoured indigenous sources of gas supplies over imports, and the recent discovery of gas under the Marathon agreement is greatly welcomed. Any discovery of gas need not greatly affect the economics of an interconnector but it will affect the timing. The Report of the Working Group on Interconnection commisioned by my predecessor concluded that a decision on interconnection should be deferred for some three years. I will keep the position under review in the light of the volumes of indigenous gas found and the likely price at which it may be available to BGE.
27.
asked the Minister for Energy if he will outline the terms of the recent agreement made between his Department and Marathon Limited.
43.
asked the Minister for Energy the basis on which the price will be set for the purchase by Bord Gáis Éireann of the new gas reserves discovered by Marathon.
I propose to take Questions Nos. 27 and 43 together.
The parties to the agreement which was signed in November last, are Marathon, Bord Gáis Éireann and the Minister for Energy. The detailed provisions of the contract are subject to commercial confidentiality, including those provisions which relate to the basis for calculation of the price which would be paid to Marathon in the event of a new commercial gas discovery.
A general outline of the terms was published in two press statements issued in July and November 1988.