Vol. 511 No. 5
16 Mr. Durkan asked the Minister for the Marine and Natural Resources the extent, if any, to which recent or anticipated gas or other mineral discoveries are likely to augment the national grid; and if he will make a statement on the matter. [24747/99]
There are two underdeveloped petroleum accumulations offshore Ireland, the Helvick oil field off the coast of Waterford and the Corrib gas field off the coast of Mayo which offer possibilities for further petroleum production in Ireland.
The Helvick oil field is held under a petroleum lease and the lessee is required to submit a detailed plan of development for the field by the end of April next year for my approval. This is a small oil accumulation, but it would be welcome as a first commercial oil development. Any oil produced from the field would have small quantities of associated gas, but these would not be significant in relation to current gas requirements and may not be put into the national transmission grid.
In regard to the Corrib gas field, the licensees have stated that further work needs to be done to enable a conclusion on commercial viability to be reached. They are currently considering drilling another appraisal well next year after which I would expect that they would be in a position to make a decision on whether the gas can be produced commercially. A decision has not been taken at this time on the location for landing the gas in Ireland, or on how the gas would be brought to market. I note BGE's recent announcement of extending the national grid from Dublin to Galway and Ennis and it is likely that this could have an influence on decisions by the Corrib licensees. The responsibility for the national gas grid is a matter for my colleague, the Minister for Public Enterprise.
The Deputy may wish to note that in the 2025 report published recently by Bord Gais, in regard to ways in which expected demand will be met after 2004, the Corrib gas accumulation was identified as one of the three preferred supply options to be considered further. The other two options identified were the duplication of the existing Scotland-Ireland interconnector and the construction of a gas pipeline from Scotland through Northern Ireland.
Will the Minister clarify whether an application has been received for a petroleum licence from Enterprise Oil in the context of the Corrib gas find? As we are all aware, the Marathon gas will come to an end in the year 2004 and 50% of our natural gas is imported, and unless we have an alternative gas supply by 2004, we will have to import 100% of our gas requirement. Is the Minister in discussion with Bord Gais and Enterprise Oil on this matter? If gas comes ashore and Bord Gais have the resources with regard to the pipelines, would it make economic sense to use those pipelines?
The question of the pipelines is a matter for Bord Gais to decide. I presume Enterprise Oil and its partners would be happy to use those but they would have to do that through negotiation with Bord Gais. That would be a commercial deal on their part and how far they and Bord Gais will go is a matter for negotiation. I hope the third well will be successful.
In relation to Enterprise Oil, I would have to investigate what it might have in terms of further licences. It has the licences on those four sections—
I am aware of that but I am talking about a petroleum licence.
No, not yet.
I would prefer if the Minister did not answer questions by way of interruption. I want to call Deputy Bell on this question. He has been waiting for some time.
Is the Minister satisfied that the oil companies are not playing tricks, knowing that the existing supplies are depleting, to secure a better tax regime? Is he also satisfied that they are not trying to use our coastal waters to secure the supplies and then land them in Scottish ports with no involvement of Irish workers?
On the question of the supply, the supply will go a little beyond 2004 because of the southern lobe on the Kinsale gas field. It may last another two years and the technology employed by Marathon has helped in that regard. In relation to Enterprise Oil's proposals to produce here, a framework group is working on the implications of that development for industry and employment here. We are working with SIPTU to try to ensure that there is the maximum possible involvement of Irish workers.
