Vol. 413 No. 2
6 Mr. Pattision asked the Minister for Energy if he will outline the progress to date on the establishment and construction of a gas interconnector; if he will give an up-to-date report with regard to the indigenous supply of natural gas available for Irish consumers; and if he will make a statement on the matter.
10 Proinsias De Rossa asked the Minister for Energy if he will outline the progress made in regard to the establishment of the proposed gas pipeline between Great Britain and this country; whether construction contracts have yet been signed; the latest expected commencement and completion dates; and if he will make a statement on the matter.
12 Mrs. Fennell asked the Minister for Energy if he will outline the progress made in the gas interconnection project; the way in which the pipeline will be operated and the supplies distributed; and if he will ensure that third party access is allowed.
90 Proinsias De Rossa asked the Minister for Energy if he will give details of the proposed construction of a gas pipeline between this country and Britain; and if there are any plans to extend this pipeline to Northern Ireland.
I propose to take Questions Nos. 6, 10, 12 and 90 together.
Planning for this gas interconnector is now at an advanced stage. There are various aspects to the project which are scheduled for execution at different times throughout the period up to the target completion date in October 1993.
The pipeline route will run from North County Dublin to Moffat in Southern Scotland and engineering design is now well under way.
I expect to put the project before the Government for final approval soon so that the major procurement and construction contracts can be placed. Construction should commence in March 1993. Notices on the forthcoming award of contracts have been placed in the Official Journal of the European Communities in compliance with the procedures laid down in the EC Directives on Public Procurement.
A formal application has been made for assistance under the European Commission's REGEN initiatives, but no decision has yet been taken on the amount of the allocation to the Irish project.
It is the Government's intention that the pipeline will be controlled and operated by Bord Gáis Éireann. An initial effect of the availability of the inter-connector pipeline will be a guarantee of supplies, both short and long term, irrespective of the results of the new drilling programme I announced a few days ago, and to ensure back-up supplies. The imported gas, initially, will be used mainly for electricity generation, but as indigenous reserves are depleted, increasing amounts will go to BGE's other markets. Gas will be distributed via Bord Gáis's distribution network.
The issue of third party access is currently the subject of intensive discussion within the EC. These discussions may well, in time, translate into policy decisions on access which would, in turn, affect the way in which the pipeline was operated.
As the electricity sector in Northern Ireland is about to be privatised, gas may be used to fuel one or more of the power stations there. The possibility of a Northern Ireland link with our project would, therefore, be a matter for the Northern Ireland authorities and the eventual owners of the power stations to decide on. My Department maintain close contact with the Northern Ireland authorities on the question.
Concerning the new drilling programme already mentioned, I have substantially reached agreement with Marathon Ireland, Ltd., on a new programme of exploration activity to cover the period 1992 to 1996. In addition, Marathon and BGE have almost reached agreement on an arrangement for additional gas production from Kinsale Head through the installation of enhanced compression facilities.
Has the cost of the project yet been estimated? In addition, what stage have the discussions with regard to the apportionment of that cost reached? What percentage of the cost does the Minister feel he will have to come up with and what funding is expected from the European Community? Finally, am I correct in interpreting the Minister's reply to me that the inter-connector, when in place, will be facilitating the importation of gas rather than the exportation of gas? I would like the Minister to comment on that.
It is quite clear that the gas resource which is being supplied through the Kinsale Head gas field and the Ballycotton field has a limited life and it is prudent that we make arrangements for alternative sources of supply. Unless there is a substantial further find of gas, of course, the whole purpose of putting down the pipeline is to give a guarantee of security of supply into the future to all the gas customers domestic, commercial and industrial, who are using gas extensively.
On the question of the cost of the construction of the pipeline, the preliminary estimates are that the cost will be about £240 million at 1990 prices. I have already confirmed that we have made an application to the Community for financial assistance under the REGEN programme and I am hopeful that we will get substantial financial assistance from the Community towards the total cost of this project. The project itself has already been approved for funding under this programme but the amount of the financial contribution from the Community has not yet been determined.
In regard to the cost, will the Minister tell us what percentage of the balance of the cost will be paid by us? Will this country be paying 50 per cent and Britain 50 per cent, or is the Minister seeking to pay a far lower percentage?
This is an Irish project. It will be funded by the Irish authorities and it will more than likely be Bord Gáis Éireann who will operate this project on behalf of the Government. The cost will be the balance after the EC grant is deducted.
As we have gone beyond priority time, could I be allowed a brief question under Question No. 10?
I am sorry, Deputy. It would not be in order. It would cause a serious precedent for the Chair. I must now proceed to other questions. The time available to us for dealing with Priority Questions is quite exhausted.
