Vol. 514 No. 2
11 Mr. Higgins (Mayo) asked the Minister for the Marine and Natural Resources the discussions, if any, which have taken place between his Department and a company (details supplied) regarding the proposed location of the gas pipe line from the gas field discovered off Achill Head, County Mayo; and if he will make a statement on the matter. [3579/00]
The gas field discovered off County Mayo, the Corrib field, has not yet been declared commercial; further appraisal drilling will be undertaken this year and Enterprise Oil hope to be in a position to decide on commerciality in December this year. Should the results of this appraisal drilling enable the company to establish that the field is commercial then it will be the duty of Enterprise Oil to apply forthwith for a petroleum lease with a view to its development. Within two years of the issue of a petroleum lease the lessee is obliged to submit a plan of development for the field for my approval.
It is required in such plan of development that details be provided on the design, siting construction, establishment, operation, abandonment and removal of facilities, including the export pipeline from the field to the onshore terminal, for the production, processing, storage or shipment of petroleum produced. Any transmission pipeline downstream of the onshore terminal does not form part of the development and is therefore not subject to my approval, being a matter for the Minister for Public Enterprise.
Pending completion of the appraisal programme a decision has not been taken on an upstream pipeline location but in the expectation that the further appraisal will be successful Enterprise Oil have in the meantime a conceptual development plan under consideration which includes analysis of a number of different possible pipeline routes and landfall locations. Initial route surveys have been conducted over several possible routes and more are planned for this year.
(Mayo): Does the Minister accept, particularly given his reply to Question No. 1 in which he stated that it is estimated that there is one trillion or possibly 1.3 trillion cubic metres of gas in this location, that this represents exciting economic news for Mayo and the west? His predecessor has had dialogue with the company and I am sure the Minister will shortly do so. It should be pointed out to them that from the point of view of proximity and the amenability of terrain the obvious place to bring the pipe ashore is somewhere along the Mayo coastline, either at Achill or Blacksod.
As regards projections and the future development of the gas field, does the Government plan to have talks with the company with a view to providing spur lines from the main line to provide a gas supply to towns along the route of or adjacent to the pipeline?
I would caution against becoming euphoric about a find which has yet to be proved commercial. That will only be decided by the drilling of an appraisal well this April when the company will be in a position to establish the commerciality or otherwise of the find. It is for the company to decide on the structural arrangements for taking gas ashore should it be successful. I had discussions last weekend with John McGoldrick, the chief executive of the company, who will make an announcement shortly, which is a matter for him. I am anxious that the landfall point would be in County Mayo, which is obvious, it being the closest point to the Corrib field. If I can influence the company in that direction, I will be happy to do so. Pipelines, spurs etc. is a matter for the Minister for Public Enterprise. However, like Deputy Kenny, as a Deputy representing the west, I am obviously keen to ensure it benefits from natural gas.
I suppose Wexford is out of the question?
Events have moved beyond the information given in the Minister's reply. This licence was granted under the frontier round and the company expects the appraisal well being drilled in April to be commercial. So that everyone will benefit from the gas find, will the Minister liaise with the Minister for Public Enterprise to form a considered, structured and co-operative response from the various organisations, including the ADMs, local authorities and the Western Development Commission? Perhaps the Minister does not have the information with him, but can he tell me what areas outside the Corrib field are not licensed? If this field is deemed commercial, will the Minister change licence conditions or will there be State involvement in any future licensing round? Regarding what Deputy Higgins said, will the Minister liaise with the Minister for Public Enterprise to discuss if Bord Gais will revise its proposal for a national grid which leaves nothing west or north of Athlone? The proposal for a Northern Ireland interconnector will have an effect on everyone concerned.
Perhaps the Deputy knows something the company and I do not. The company has been quite adamant it is not yet aware if the gas find is commercial and will not be until the April drilling.
It tends to be cautious.
Given the information he has, perhaps he could help Mayo win the All-Ireland.
One would need more than gas for that.
That is the kind of wishful thinking in which he is engaging. I have liaised with my colleague, the Minister for Public Enterprise. Clearly there will be a major change in tactics if this find is commercial. There is gas off the west of Ireland. We will carefully analyse how we can best serve the west. The commercial reality is that Dublin is the marketplace for gas and is a desirable location for any company. However, strategically we will try to ensure in our negotiations with the company that the west has the best possible service.
(Mayo): I know matters have not been finalised but there is reasonable confidence regarding the prospects of this find. However, in the context of future development plans, is the Government prepared to consider the establishment of a gas fired electricity generating station because from the next couple of weeks, 28% of the electricity supply will be provided by private sources? It is assumed that some peat fire stations will be closed. Given that there is a peat fire station in this location, in Bellacorick, will the Government consider, in the light of a huge deficit in electricity supply in this region, the establishment of a gas fired generating station using gas from the Corrib field? This would seem to be the sensible thing to do.
If the find is commercial and successful, there will be many possibilities, all of which will be considered. My objective is that County Mayo and the west will be the first to benefit from gas coming ashore. The Deputy's suggestion will be considered.
Written Answers follow Adjournment Debate.
