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Energy Resources.

Dáil Éireann Debate, Tuesday - 24 October 2006

Tuesday, 24 October 2006

Questions (362, 363)

Marian Harkin

Question:

433 Ms Harkin asked the Minister for Communications, Marine and Natural Resources the reviews or feasibility studies that have been carried out by his Department on the possibility of bringing natural gas to the west and north west since 1 January 1999; the cost of these studies or reviews; and if he will make a statement on the matter. [33858/06]

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Written answers

Fingleton White and Co. Ltd. have been contracted by my Department to conduct the detailed feasibility study including cost benefit analysis to evaluate the possibility of bringing gas from the Galway-Mayo pipeline to Donegal Town via Sligo. The estimated total cost of the study is €190,000. The study, which commenced in July, will be completed in early 2007. This is the only such study commissioned directly by my Department within the timeframe mentioned.

The Commission for Energy Regulation (with funding from the INTERREG programme) carried out a feasibility study and cost benefit analysis in relation to the proposed extension of the pipeline from Derry to Letterkenny. Bord Gáis Éireann had a number of studies carried out in relation to extending the pipeline in the west and northwest.

Marian Harkin

Question:

434 Ms Harkin asked the Minister for Communications, Marine and Natural Resources the outcome of the contact between officials from his Department and European Commission officials in 2002 on the issue of providing grant aid to build a gas transmission pipeline to Sligo via Ballina from the then proposed Mayo to Galway pipeline; if there has been further contact between officials from his Department and the Commission since then; and if he will make a statement on the matter. [33859/06]

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The Government commitment indicated in 2001 that we would examine the feasibility of bringing natural gas from Corrib to Sligo via Ballina. It was clear from a BGE study carried out in 2001 that any of the options then considered would require either an increase in gas transmission tariffs or an extremely high level of grant aid. As part of the evaluation process at that time officials of my Department held exploratory discussions with the EU Commission regarding various possible funding configurations in the context of State Aids and on the proviso that the project would be found to be economically feasible in the first instance. These discussions were not concluded pending a definitive proposal for the Commission to consider. Further consideration was put back pending the outcome of planning issues for the Corrib Terminal.

Consultants have recently been contracted to conduct a detailed feasibility study, including cost benefit analysis, to evaluate the possibility of bringing gas from the Galway-Mayo pipeline to Donegal Town via Sligo. This study will be completed in early 2007.

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