Dáil Éireann Debate, Tuesday - 4 July 2006
350 Mr. Kenny asked the Minister for Communications, Marine and Natural Resources the position regarding the provision of a second interconnector for the provision of natural gas to ensure stability and supply; and if he will make a statement on the matter. [26112/06]
View answerUnder Section 19 of the Gas (Interim) (Regulation) Act 2002, the Commission for Energy Regulation (CER) is required to prepare and publish an annual forecast of capacity flows and customer demand on Ireland's natural gas system over a seven year period. The 2005 Capacity Statement includes a range of possible demand scenarios that may be expected to arise over the coming years. The scenarios incorporate various levels of demand, based on forecasts for the domestic, industrial and commercial, and power generation sectors, while also considering potential timeframes for new indigenous supply.
Ireland currently imports up to some 85% of gas via the two interconnectors with the UK. In the long-term, imports via the interconnectors will increase and reinforcement of the Scottish onshore part of this route may be required as early as 2011/12. However, the timing of indigenous sources coming on-stream and any commercial developments in relation to storage and LNG will influence a decision on these reinforcements. In addition the completion of the South North gas pipeline in Autumn 2006 will advance the objective of an All-Island gas market. The development of gas infrastructure is characterised by long lead-in times and high costs which are reflected in increased consumer tariffs. While it is crucial that investment in gas infrastructure keeps pace with forecast demand, the increasing costs associated with this should not, as a policy imperative, undermine the competitiveness of gas or place undue burdens on consumers. The policy is therefore to ensure just-in-time delivery of increased capacity.
The current Gas Capacity Statement indicates that our infrastructure is sufficiently robust to cater for the majority of scenarios modelled. Only in the case of the highest demand forecast would reinforcements to the infrastructure be envisaged within the period of this forecast. Developments in the UK market are closely monitored and this informs the ongoing assessment of security of supply policy. The Kinsale Field continues to provide Ireland with an indigenous supply of gas and the potential for additional indigenous supplies when realised in the context of the Corrib Field will reduce Ireland's import demands in the future. The CER and my Department will continue to closely monitor the supply situation.
