Vol. 510 No. 6
137 Mr. Kenny asked the Minister for Public Enterprise the reason for proposals to have a second gas interconnector provided from Scotland; the estimated cost of its provision; the timescale projected; and if she will make a statement on the matter. [23675/99]
The need for a second gas interconnector arises because gas demand, driven mainly by our economic growth in the 1990s, has exceeded significantly projections which underlay the design of the Scotland-Ireland interconnector built in 1993. As a result, additional gas import infrastructure may be required by 2004.
Because of the constraints of the existing interconnector, it has been necessary to consider other supply options. A number of technical studies and economic evaluations have been prepared in relation to these options and these reports are available on my Department's website. The main recommendation from these reports is that any decision concerning major capital investment in import pipelines be delayed pending clarification on the commerciality of the Corrib gas find.
In the meantime, Bord Gais Éireann have continued with their work on preliminary engineering and routing studies regarding various new gas supply infrastructure options, including a second Scotland to Ireland interconnector. The estimated cost of such an interconnector would be around £300 million. There is also the possibility that Ireland's infrastructure requirements could be met by way of a proposal for a Belfast/Dublin gas pipeline as referred to in reply to PQ No. 13 of 3 November, 1999.
138 Mr. Kenny asked the Minister for Public Enterprise the projected use of natural gas for electricity generation for the foreseeable future; the way in which it is expected that these projections can be met; the estimated proportion that can be met by indigenous supply; the proportion that will have to be supplied from external sources; and if she will make a statement on the matter. [23676/99]
In August 1999, Bord Gais Éireann published a Review of Natural Gas Transmission Capacity Requirements to Year 2025, a copy of which is on the BGE website. The review outlines the findings of the "Gas 2025" project jointly commissioned by my Department and BGE. "Gas 2025" examined a number of gas demand scenarios, all of which envisaged power generation becoming the dominant source of overall gas demand by 2010.
Currently gas demand for power generation represents 59 per cent of overall gas demand. Both the low demand and high demand scenarios in "Gas 2025" estimate that power generation will account for 70 per cent of overall gas demand by 2010.
At present, approximately 35 per cent of all gas demand for electricity generation is met through indigenous supplies from the Kinsale Head Field with the balance coming via the interconnector. As the Kinsale Field depletes over the coming years, and in the absence of further indigenous gas finds, the interconnector will supply 83 per cent of gas demand for electricity by 2003. New gas infrastructure will be required by 2004 to meet rising gas demand. Here there are a number of possibilities – the Corrib Field, if it is developed commercially; further interconnection with Britain; or a north/south pipeline.
The prospects for the Corrib field look promising but the consortium involved in the exploration of the field, Enterprise Oil and partners, has indicated that further appraisals will have to be carried out before a decision can be taken on whether the field is to be developed commercially. Until there is more certainty about its commerciality it is impossible to say what its potential impact on gas supply in Ireland will be.
139 Mr. Kenny asked the Minister for Public Enterprise the position regarding the expansion of the gas pipeline network; the measures, if any, she is taking to ensure that the west and north- west areas are fully covered by such expansion; and if she will make a statement on the matter. [23677/99]
BGE's present workplan comprises six major pipeline projects in Ireland involving 120 kms of pipeline: Ballough to Kilshane (County Dublin); Abbotstown to Poolbeg (Dublin City); Caherlag to Ballincollig (Cork); Pilltown to Navan (County Meath); Baunlusk to Ballyraggett (County Kilkenny) and Ballyvass to Athy (County Kildare).
In addition, my Department has recently received a request from Bord Gáis Éireann seeking approval under section 8 of the Gas Acts, 1976-1998, to extend the natural gas grid from Dublin to Galway and onwards to Limerick. The request is now being considered in my Department in the light of my obligations under the Gas Acts.
The project will also have to be examined in the context of the emerging regulatory environment for the liberalised gas market and in the light of recent studies into gas demand and infrastructure requirements to the year 2025.
