Skip to main content
Normal View

Seanad Éireann debate -
Wednesday, 15 Nov 2000

Vol. 164 No. 10

Adjournment Matters. - Natural Gas Grid.

The recent announcement by Enterprise Oil regarding the Corrib gas find is the most exciting and potentially challenging development that has happened in the history of County Mayo. There is great jubilation in the county about the find 50 miles of its north coast. As I am sure the Minister of State is well aware of the history of this matter, I will not to dwell on that aspect.

The position is that a deal has been done between Enterprise Oil and Bord Gáis for a transmission line from Pollatomish on the north Mayo coast to Craughwell in Galway linking up with the national grid of Bord Gáis. There is great unease in the county that only two towns, Claremorris and Castlebar, to which he referred in the Dáil on 24 October, will be serviced initially by a spur line from the main transmission line. Several small and large towns in Mayo are within a reasonable distance of the main transmission line – I refer specifically to towns such as Crossmolina, Killala, Foxford and Ballina, which are within a radius of seven or eight miles of the main transmission line.

The thinking in the area is that a mile of spur line would cost about £500,000, that is a ballpark figure. Servicing Ballina would involve an investment of approximately £4 million to £5 million. In the overall context of this development, which is expected to be in the region of £700 million or £800 million, maybe approaching £1 billion, an investment of another £7 million or £8 million is not very large. Given that Mayo is in the BMW region, some moneys should be provided for such connections. I eagerly await the Minister of State's reply to discover how the Government is exploring the possibility of connecting the towns adjacent to the main transmission line.

The current position could be compared to laying a water pipe in one's back garden to supply one's neighbour with water but not benefiting from that pipeline oneself. This is hard to accept. I am sure the Minister of State will agree it is extremely hard to sell the idea of connecting only two towns in Mayo to the main transmission line, especially when we have this great natural resource on our doorstep. It is the most exciting announcement in the history of County Mayo and it has great commercial potential.

Having spoken to the transmission manager of Bord Gáis, I am aware it is extremely interested in industry in the area. He said that Bord Gáis is not looking for ways not to connect a town to the main transmission line, but for ways to do so, although such a project must be commercially viable. That is what it is considering. The domestic market in those towns would possibly not be sufficient to justify a commercial connection but we want large industries to be taken into account in this overall project.

If the provision of such connections do not come within the commercial remit of Bord Gáis, I exhort the Minister of State to consider favourably allocating money for such connections, as there must be other options to ensure that a small amount of money, £4 million to £5 million, can be made available to cover the cost of the necessary spur lines, which would add enormously to the potential of those towns in Mayo.

I thank the Senator for raising this important matter. I wish to make it clear that I have no function regarding the matter raised by the Senator. The question of which areas of the country or which towns will be connected to the natural gas network is a matter for pipeline developers, whether that is Bord Gáis Éireann or private sector developers.

It is only after a developer has decided on a pipeline route and which areas and towns are to be served that the proposal is submitted to my Department for regulatory approval under the Gas Acts. In addition, in the case of proposals by Bord Gáis, I must also give approval for the expenditure in my capacity as shareholder. In approving pipeline proposals I can attach certain conditions in relation to safety and environmental considerations but I emphasise that I cannot determine what the route of a pipeline will be or what towns along its route are to be served by spur lines. This is a matter for the pipeline developers and the decision will be made by them on the basis of commercial criteria.

Given recent announcements in the media, I understand the Senator's concerns and am happy to explain the current state of developments regarding extension of the natural gas network. The main development in the extension of the gas transmission network by BGE is its proposal to build a new pipeline from Dublin to Galway and onwards to Limerick. As gas demand increases and the Kinsale field comes to the end of its natural life over the next couple of years, there is a necessity to reinforce the gas transmission system to ensure that it is capable of meeting demand in the south of the country.

The option of providing this extra capacity by building a pipeline to the west and on to the south has the added benefit of making gas available to areas in the midlands and the west as yet unserved by a gas supply. As many Senators will be aware, the Taoiseach recently announced a joint venture between BGE and the consortium involved in the exploration of the Corrib field to build a pipeline from Pollatomish, County Mayo, to Galway to bring gas from the Corrib field to the main BGE onshore system in anticipation of a final decision on the commerciality of the field by the Corrib partners.

In relation to this proposed pipeline, the House will be aware that the Minister for the Marine and Natural Resources announced recently that BGE has indicated that Castlebar, Claremorris, Tuam and Athenry will be among the towns along the route of the pipeline from Pollatomish to Galway that will receive a natural gas supply.

BGE is committed to connecting the natural gas network to all major towns in the country provided this can be done in line with its commer cial mandate under the Gas Acts. BGE has informed me that in addition to providing a gas supply to the towns mentioned earlier, the prospect of supplying gas to other centres of population in the west and north-west is under active review as part of a national study to determine centres that can be supplied with gas on an economic basis.

The question of gas supply to other towns in the catchment area of the proposed pipelines is a matter for BGE to examine in assessing the economics of extending the transmission and distribution networks into the west or north-west. When this assessment has been completed BGE will have a fuller picture as to the viability of such extensions.

The Seanad adjourned at 8.45 p.m. until 10.30 a.m. on Thursday, 16 November 2000.

Top
Share