asked the Minister for Energy the plans he has for the extension of the natural gas network; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Natural Gas Network.
11.
During 1988 Bord Gáis Éireann completed the extension of the natural gas network from Dublin to Dundalk. During the coming months Bord Gáis Éireann plan to construct a series of spurlines from this pipeline to supply natural gas to the horticultural areas of North County Dublin.
Further extensions to supply commercial and industrial customers adjacent to the network will continue to be undertaken where it is commercially viable to do so.
In view of the imminent discovery of further natural gas resources, may I ask the Minister if he thinks it would be appropriate to expand the mainline network to areas not now served?
The prospect of additional gas, better security of supply and the greater interest which is now developing so far as exploration in the Celtic Sea is concerned, all combine to enable Bord Gáis to look afresh at new commercial opportunities for an extension of the main pipeline. I have already met the chief executive with this in mind.
May I ask the Minister to expand more on the present state of play with regard to the extension of the line to the horticultural areas of North County Dublin? Will the Minister indicate to the House the likely degree of take-up of the service among the growers in that area? Has he in any way liaised with his colleagues in the Department of Agriculture and Food to ensure the takeup and availability of the service to that area will be matched and married to a proper development of agricultural and horticultural growth in the area, particularly in regard to glass house development?
As I mentioned in my earlier reply, that work is proceeding. Bord Gáis Éireann have got commitments from 20 growers covering approximately 50 acres of heated greenhouses. If you like, this was the minimum required at the initial stage to make a commercial decision with regard to these spurlines. That has been achieved but clearly there is room for growth there. The whole reason for the development was to enable horticultural interests in that area to compete more favourably with their counterparts abroad. Clearly consideration of further developments and enhancement of that field is central to all of this issue.
The issue of compensation appears to be presenting some difficulties. Is the Minister responsible for these discussions and can he say what stage they have reached? Is the matter likely to be resolved shortly?
The Deputy is clearly injecting new matter into this question.
These are the areas of development which are clearly related.
Normally they are handled by Bord Gáis Éireann. I would expect that the normal processes would be in place in such matters. If there are areas of disagreement there are other judicial processes available.
The Minister has been reported in recent days as favouring a new look at the provision of a gas line to Northern Ireland. Is the Minister thinking in terms of present gas resources or additional ones which appear to be about to come on stream from the Celtic Sea? Has the Minister had any talks with his counterpart in the British Government?
My discussions with the Secretary of State for Energy earlier in the week covered that general agenda. The question of additional gas resources in the Celtic Sea are central to future possibilities for the security of gas supply and the extension of the existing pipeline. Arrangements are in train at present for a meeting with the Northern Ireland Secretary of State, Mr. Tom King, which will probably take place in the course of the next week.
Following on from that reply, in the past price has been the impediment. During our term in Government they refused to take the gas when an offer was made to them. I do not know whether there were political reasons but the reason advanced was price. Does the Minister think he can now offer gas to them at an acceptable price? Is the Minister afraid that there may be a parallel here when it comes to sabotage and destruction with regard to the rail line between Dublin and Belfast and the electricity supply line between South and North——
This is quite an extension of this question.
——that the IRA may well sabotage any such connection?
To answer the second part of the Deputy's question, I said I would not be paralysed or compromised in this matter by security considerations. We have a clear responsibility to try to explore the potential of sales, where we can, with these resources in the South and particularly where we can facilitate our neighbours in Northern Ireland. However, I am under no illusions. The Deputy has pinpointed difficulties which might well arise. We must endeavour to surmount any such difficulties and not have ourselves consigned to being unable to take action on an absolutely permanent basis on account of actions by totally irresponsible groups in the country.
With regard to the Deputy's earlier question as to whether the price of gas will be acceptable ultimately, I should point out that there are two aspects involved. It is not merely a question of the price being acceptable to the people with whom I will be negotiating. I must also obtain an acceptable arrangement from my point of view. At least there appears to be the basis on which a better understanding can be reached. While the price was an issue in the previous negotiations, the Deputy will agree that there may well have been extenuating considerations also.
It would constitute a major coup if the Minister could achieve some success in that respect.
Thank you.
Is it not true that, to some extent, that horse has bolted in that the major consumer markets in Northern Ireland have made substantial investments in conversion that close off many of our options in this area?
There is no doubt that, in the intervening years, the dismantling of some of the older systems and the transference to new energy sources have limited the possibilities and potential of this market. Nevertheless, the information furnished to me is that there are some fairly strong commercial and industrial interests that maintain a very keen eye on developments in this area. There is also the other question of the best possible use of our resources in the context of the closeness of the geographical link, since the pipeline has now been developed to Dundalk, and the potential for a spurline northwards even on a testing basis.