Dáil Éireann Debate, Tuesday - 6 November 2012
639. Deputy Michelle Mulherin asked the Minister for Communications, Energy and Natural Resources when he expect the Irish State to begin to receive net revenue from the Shell Corrib development; the monetary value expected; and if he will make a statement on the matter. [48075/12]
View answerThe principal direct financial return to the Exchequer from the Corrib gas field will be through the 25% tax that will apply to profits from the gas field. The level of profits will depend on a combination of factors including, the volume of recoverable gas, the cost of developing and operating the infrastructure, the price of gas over the life of the field, together with the timing and profile of production.
Completion of the Corrib gas field development works by the developer is the principal factor that will determine the date for first gas. Pending such completion, it is not possible to state a date for when gas from the Corrib gas field will become available. It is estimated that construction of the onshore section of the pipeline, including the construction of a 5km tunnel, which began last year, will take in the region of three years.
First gas cannot, therefore, reasonably be anticipated before the second half of 2014 and revenues payable to the State will not commence until the development goes into profit.
