Donal Moynihan
Question:12 Mr. Moynihan asked the Minister for Transport, Energy and Communications when the gas pipeline to the United Kingdom will be in use; the level of activity he expects; and the estimated final cost of the project. [6530/95]
Written Answers. - Natural Gas.
Michael McDowell
Question:15 Mr. M. McDowell asked the Minister for Transport, Energy and Communications the current estimate of the life of the Kinsale Head Gas Field, County Cork; and if he will make a statement on the matter. [6500/95]
Ivor Callely
Question:78 Mr. Callely asked the Minister for Transport, Energy and Communications the likely level of Irish natural gas available and cost to the consumer for the next ten years; and if he will make a statement on the matter. [6606/95]
I propose to take Questions Nos. 12, 15 and 78 together.
The Kinsale Head and associated Ballycotton gas fields are expected to be depleted in the next five years or so. It is difficult to be precise as regards the depletion date as that depends not only on the amount of gas reserves remaining in the reservoirs and how much can be technically produced but also on the economics of producing and selling the gas.
To provide gas supplies when Kinsale Head/Ballycotton are depleted and to provide an alternative supply in the event of any disruption of that source prior to depletion, Bord Gáis Éireann has provided a gas interconnector between Ireland and the United Kingdom. In the event of further indigenous gas supplies being discovered, the interconnector can be used to export any gas surplus to our requirements.
From late 1996 it is expected that Bord Gáis Éireann will have to import some of its gas requirements through the new pipeline as the Kinsale Head/Ballycotton supplies will be decreasing from that date. According as the Kinsale Head/Ballycotton fields decline there will be an incremental increase in gas flows through the new pipeline each year from 1996.
The interconnector is also designed to provide infrastructure for the development of the gas industry. In addition, in line with Government policy, BGE will facilitate gas producers in the Irish offshore.
The pipeline part of the interconnector project was completed and commissioned by BGE in December 1993. The compressor station in Scotland is mechanically complete and commissioning is excepted to be completed by 31 May 1995.
Since December 1993 small volumes of gas have been transported through the pipeline. In addition, the pipeline has provided security of supply facilities to protect BGE's core market of 230,000 customers should there be an interruption in supplies of gas from Marathon at Kinsale Head/Ballycotton.
The estimated final cost of the interconnector project will be within the approved budget of £287 million, of which £91 million will be provided by the European Union by way of grant from the REGEN initiative.
The price of gas moves in line with world energy prices. Gas will have to remain competitive with other fuels, otherwise it will lose its market share.