The Minister of State will move the motion, following which each Opposition member may address the motion. This will be followed by a question and answer session. I understand a briefing document has been circulated to all members.
Natural Gas Pipeline: Motion.
I move:
That Dáil Éireann, pursuant to Article 29.5.2° of Bunreacht na hÉireann, approves the terms of the Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Ireland relating to the Transmission of Natural Gas by a Second Pipeline between the United Kingdom of Great Britain and Northern Ireland and Ireland and through a Connection to the Isle of Man between Ireland, of the first part and the United Kingdom of Great Britain and Northern Ireland, of the other part, the text of which was laid before Dáil Éireann on 23 June 2004.
The formal approval by Dáil Éireann of the terms of the agreement is required under the terms of Article 29.5.2° of Bunreacht na hÉireann because Exchequer expenditure could arise in meeting the expenses of the Irish Sea Interconnector Commission which was established under the first interconnector agreement in 1993. The commission will be used to resolve disputes about the interpretation or application of the agreement. Any expenses incurred in convening the commission will be shared equally between the Governments. The commission has not been convened since its inception in 1993. The second interconnector has been operational since November 2002. Government approval of the agreement was conveyed on 22 June 2004 and the agreement will be signed in autumn 2004.
I welcome the Minister of State, Deputy Browne. What will the gas pipeline mean to my county of Wexford, where the Minister of State also comes from? Will it mean Wexford will get natural gas sooner or later? Will it speed up the arrival of natural gas to certain areas? Will the Minister of State also elaborate on the security arrangements?
It was built in 2002. The decision to build a second interconnector between Ireland and Scotland and its design was subject to vigorous departmental examination. It was based on the Gas 2025 study, which used ESRI gas demand expectations to estimate required capacity going forward 25 years. From that study it emerged there could be a shortfall in gas capacity during the winter of 2002 to 2003. The critical period was the winter of 2002. Having analysed all the options at the time the second interconnector was the only project that would be operational in the required timeframe. Rationing or interrupting supply was not a realistic option because of the risk failure and the consequent impact on the economy.
One option considered at that time was to interrupt supply to major State sector users such as IFI to reduce peak demand. Lack of capacity and possible rationing of gas was considered to be a grave risk to Ireland's economic well-being and attractiveness to investment so it was decided to build a second Scotland-Ireland interconnector.
As Deputy Kehoe is aware, gas is supplied to Waterford, Carlow, Kilkenny and Wicklow. Wexford is the only county in the south east that does not have gas. I understand a decision has been made to take it to Belleview Port in the very near future. I assure the Deputy we will make every effort to take it the rest of the way into Wexford. As Bord Gáis bases its decision on the demand for gas, the great oil and ESB stations and other major users of fuel supplies would have to be on board before it would be viable for gas to come to Wexford. I am sure that will be considered in future.
Is it usual to approve a facility after it has been constructed? I accept that we are approving the terms of the agreement but it seems strange that it is after the construction. Perhaps the Minister of State would comment on that.
Will he also comment on safety aspects of the pipeline? At what pressure is the gas currently flowing through the pipeline? Is the pipeline in a trench in the sea bed or is it exposed? What provisions are there to prevent trawlers or other fishing boats snagging or catching on it?
I welcome the Minister of State. Will he inform us about the make-up of the commission?
It is quite normal to approve the agreement in this way after the construction of the pipeline. The approval for the construction of the second interconnector was a Government decision but it is normal to authorise the signature of agreements between Governments afterwards.
I understand the pipeline was constructed in agreement with fishery organisations. Other bodies that utilise the sea were also involved in the decision-making and to ensure the pipeline was laid in such a way that it would not affect fishing boats, trawlers or some of the bigger ships that move through the seas.
The commission, in accordance with Article 14 of the 1993 agreement, shall consist of two joint chairpersons and two joint secretaries. One chairperson and one secretary shall be nominated by each Government with substitutes as necessary. Any other person which either Government or either chairperson considers should be present at any commission meeting may also attend. The function of the commission shall include that of considering matters as referred to it by either or both Governments. Its procedure shall be subject to such further arrangements which may be agreed by the two Governments from time to time. Meetings of the commission shall be convened by the two Governments acting jointly. However, if either Government requests a meeting of the commission it shall be held as soon as reasonable thereafter, not later than 21 days after the receipt of that request, unless otherwise agreed by the two Governments.
As Deputies are aware, the Isle of Man is also involved and its Government may request the convening of meetings of the commission on matters affecting its interests. A representative of the Government of the Isle of Man may be present at any meeting convened as a result of such requests.
At what pressure is gas carried through the pipeline and is there a valve system when it comes onshore so that we can control the incoming supply or does it connect directly to our grid?
I do not know what the pressure is, but there are valves at both ends. I will convey to the Deputy the information about the pressure.
What route is the pipeline taking? Where does it come ashore?
There is a reference to the construction and operation of a second Scotland-Ireland interconnector pipeline between Beattock near Moffat in Scotland and Gormanston in Ireland, together with the connection of the Isle of Man for the transmission of natural gas. We have a map of the exact route which we can circulate to members.
The Minister of State referred to the possible arrival of gas at Belleview Port. Is that from an extension of the existing grid?
It is an extension of the existing gas pipeline into Waterford.
What effect will this have on the all-island energy policy? Will it serve Northern Ireland?
There is provision in the agreement for gas to Northern Ireland. The Northern Ireland gas line project, namely, the Belfast to Derry and Gormanston to Antrim pipelines are expected to be completed in autumn 2004. Consideration is also being given to the proposed Derry to Letterkenny pipeline. That project is divided into two phases, the first of which is a feasibility study to establish economic viability, and the second, depending on the positive outcome to the first, the Belfast to Derry pipeline is expected to be completed in autumn 2004. BGE is finalising the proposed route and detailed costings for the Gormanston to Antrim pipeline and the construction work are expected to be completed by the end of 2006. A sum of €38 million is to be contributed by way of joint Exchequer contributions towards the project, the Irish element of which amounts to €8 million.
Does the gas coming into Gormanston and Belleview originate in the same gas line?
No.
If planning permission is granted by An Bord Pleanála in respect of bringing gas ashore in Mayo, will the pipeline have anything to do with the gas pipeline to which we are referring now?
As the Deputy knows, the issue is with An Bord Pleanála at present. If the decision is taken to bring gas ashore at that point, it will be linked into the pipelines generally. It would be of major importance to energy in Ireland. The issue will be before An Bord Pleanála for some time but if it comes on stream it will become part of Ireland's energy production line.
Can the interconnecting pipelines work in both directions? Can we export gas through them?
Yes.
The committee has now completed its consideration of the motion. The clerk to the committee will arrange to have a draft report prepared, copied and circulated to members.