Vol. 542 No. 3
11 Mr. G. Reynolds asked the Minister for Public Enterprise her plans for the extension of the natural gas pipeline from the Corrib gas fields to the north west of Ireland; the cost of the extension; the towns it will serve; and the time frame for completion of the works. [24115/01]
Earlier this year, the Government decided, in principle, that the gas network should be extended to the north west. An evaluation carried out by Bord Gáis has determined that this would require grant aid, as the demand for gas in the long-term would not be sufficient to pay for the capital cost of extending the system. Such grant aid would require State aid clearance from the EU Commission.
Last month the Government announced
that it was moving ahead with the next stage in the project which is to conduct a detailed study on extending the gas network to Sligo via Ballina from the proposed Mayo-Galway pipeline and to Letterkenny from Derry, which is expected to be served by a pipeline from Belfast. Bord Gáis is being asked to carry out this study, the purpose of which is to fully define the pipeline extensions and to give an accurate assessment of the levels of grant aid that would be necessary. At the same time it is proposed to submit a State aid case to the EU Commission.
The level of grant aid depends on the balance between the capital and operating costs of the extension and the estimated gas demand in the new area being served. The initial indications are that considerable grant aid would be required. It is necessary at this stage to define the pipeline extensions in greater detail so
that an accurate level of grant aid can be identified.
I understand this phase of the project will take about six months to complete, following which the issue of grant aid will be considered again by Government, provided the necessary clearance has been obtained from the European Commission. It would take about two further years after that to complete the pipelines.
I am anxious that the detailed study and the State aid case be conducted as soon as possible so that the project can be progressed.
(Mayo): Has the Government at any level, the Minister of State's colleagues or has he working in conjunction with his colleagues put together a plan to exploit the resource for the benefit of this region that has been starved of jobs, development and industry? Is there a coherent strategy in place from the point of view of industrial development? Is his Department aware of any application or interest in exploiting the gas resource by way of an ESB electricity generating station or a privately owned one?
This is an exciting and positive development for the west and north west. Even though the national development plan did not mention extension of pipelines BGE plans to spend 254 million in the BMW region on the Dublin-Galway-Limerick ring main and on the Mayo-Galway pipeline over the next two years. In addition, the Government has decided to embark on plans to further the development of the infrastructure. Industry will be attracted to the region by this development. Every chamber of commerce, county council and urban council is literally screaming for extension of this infrastructure to its area in the definite knowledge that it will attract commercial and industrial activity.
This decision has been taken and this will happen. My function is to ensure that the decision of the Government is implemented and that the work is accelerated to enable this other work to follow on immediately when the ring main and the Galway-Mayo pipeline are in place.
Given that we have been aware of the Corrib find for a considerable time, why was this preparatory work not done well in advance for all this to be in place by now? I have some sympathy for the Minister of State because I am aware of the obstacles that were put in my way when I tried to do something similar.
I suggest that the time is just about right now. There is no gas infrastructure to the west and the north west. BGE has a scheduled completion date of late 2002 for the ring main and August 2003 for the Galway-Mayo pipeline. The preparatory engineering work to be done by BGE and the business in terms of State aid to be conducted with the EU Commission can be done in tandem with the main work. Those preparations for the extensions of the infrastructure can be made and will follow on from work on the ring main and Galway-Mayo spur line.
(Mayo): Has any application been made to the Department regarding an electricity generating station? Has the Department received any indication regarding the commerciality or otherwise of the recent find off the Cork coast?
While the new developments are welcome, is it not the case that they will skirt around the BMW region and the heart of that region will not be serviced by gas? Will the Minister of State consider developing a line from Athlone through to Claremorris up to the Corrib gas field?
To go through Roscommon.
Deputy Naughten and I are in the heart of the BMW region.
We do not have access to gas.
BGE has flagged the additional towns of Castlebar, Claremorris, Tuam and Athenry, that will be serviced. Expenditure of 0.25 billion in the BMW region is not skirting around the region, to my mind. This is a positive and developmental decision that has been taken and it will be implemented.
Deputy Higgins will be aware there are plans for an electricity generating station at Coolkeeragh which will help with the economics of bringing gas to Letterkenny, as distinct from the costs of bringing it on a South-North route along the western seaboard. Consideration regarding power generation plants in the western area is incorporated in the plans and the preparatory planning that is taking place.
