Vol. 513 No. 6
192 Mrs. Owen asked the Minister for Public Enterprise the decision, if any, made regarding another gas link; the plans, if any, she has to install another gas pipe into Loughshinney, County Dublin; and if she will make a statement on the matter. [3012/00]
In late 1997 my Department and Bord Gáis Éireann jointly commissioned a study of natural gas demand and related infrastructural requirements to the year 2025. The consultants examined a range of options and recommended the provision of a second Scotland-Ireland interconnector as the optimal solution on cost and other grounds.
My Department engaged economic consultants to undertake an economic evaluation of the various supply options proposed under the Gas 2025 study and the possibility of a commercial gas find in the Corrib field which had emerged since the Gas 2025 study had been launched. The consultants confirmed the findings of the gas 2025 study that a second Scotland-Ireland interconnector, parallel to the existing interconnector, was the preferred choice. However, they recommended that a final decision on future supply infrastructure should not be taken until the position regarding the prospects for the commercial development of the Corrib field is clear. I understand from the Corrib partners that it will be towards the end of this year before such a decision is likely to be taken.
A prudent approach to security of supply dictates that the decision on future gas supply infrastructure cannot be deferred indefinitely. In addition to the Corrib possibility, there have been a number of other developments including the recent announcement by Premier Transco of its proposal to build a North-South interconnector, if they can procure sufficient demand, and proposals by other parties for the provision of additional gas pipelines both to and within Ireland. The primary initiative in relation to a new pipeline rests with players in the liberalised gas market including BGE. BGE has signalled its intention to build a second Scotland interconnector and this must be considered in the context of all the options.
My Department has commissioned consultants to advise on the policy approach to a regulatory regime for the authorisation of new gas pipelines. This will aim to promote the development of competition in the supply of natural gas and provide appropriate economic signals in relation to the establishment of new pipeline infrastructures.
