I propose to take Questions Nos. 8 and 10 together.
Two fields, the Kinsale Head gas field and the recently discovered Ballycotton gas field, contain the known reserves of natural gas available to Ireland at the end of 1989.
The latest estimate of recoverable reserves for the Kinsale Head gas field is 1.48 trillion cubic feet (TCF).
In the case of a new gas field such as Ballycotton, until gas has been produced for some time estimates of reserves are necessarily less exact, but the reserves in the Ballycotton field are expected to be about one-twentieth of the reserves in the Kinsale Head field.
It is currently estimated that the reserves from the two fields will be exhausted by the year 2002.
With regard to the question of building a gas pipeline to Britain, as I stated in the House in reply to Question No. 45 on 7 December last, I have given priority to the examination of long-term gas supplies, either by interconnector or as liquified natural gas, so that we will be in a position to make an early decision on the matter. The Government have decided that now is the best time to tackle the extensive planning requirements that would precede a decision on a project of that size.
A team drawn from my Department and Bord Gáis have been established and a consulting engineer has been retained to assist the group. A number of meetings with British and continental interests have taken place and further contacts are planned. It is intended that we will shortly have a clearer picture of which approach is best and we will then be in a position to begin negotiations for a gas supply and to start preparations for a pipeline contract.
It is my intention that when planning for the project is sufficiently advanced, a formal application will be made for Community assistance. Discussions have already taken place with the European Commission and already there is agreement in principle for EC part-financing of the necessary feasibility studies to be undertaken in advance of final decisions on the required capital expenditure.
With regard to the "agreement" referred to in Deputy Mac Giolla's question, I assume he is referring to the gas sales agreement recently signed by Marathon Petroleum Ireland Limited and Bord Gáis Éireann. This agreement is a confidential contract between the two parties and will not, therefore, be published. Royalty payments provided for in existing agreements with Marathon will apply to the Ballycotton gas field.
With regard to the question of extending the natural gas pipeline, I would refer the Deputy to my reply to the House on 7 December last on this issue. In essence, the position is that further extensions to supply customers adjacent to the network will continue to be undertaken only where it is commercially viable to do so.
