Dáil Éireann Debate, Tuesday - 16 April 2013
717. Deputy James Bannon asked the Minister for Communications, Energy and Natural Resources his plans to extend a gas pipeline spur to Longford and Mullingar towns, as this would be a huge boost to businesses in Longford/Westmeath, which is part of the BMW Region; and if he will make a statement on the matter. [16740/13]
View answerThe development and expansion of the natural gas network is in the first instance a commercial matter for Gaslink, which is mandated under Section 8 of the Gas Act 1976, as amended, to develop and maintain a national system for the supply of natural gas that is both economical and efficient.
The Commission for Energy Regulation (CER), is statutorily responsible for all aspects of the assessment and licensing of prospective operators who wish to develop and/or operate a gas distribution system within the State under the Gas (Interim) (Regulation) Act 2002. I have no statutory function in relation to the connection of towns to the gas network.
The CER, in 2006, approved a new network connections policy, which created the opportunity to reassess the feasibility of connecting certain towns to the gas network. In order for any town to be connected to the gas network, certain economic criteria need to be met as a prerequisite. The policy framework provides that, over a certain period, the costs of connecting the town to the network are recouped through the actual consumption of gas and the associated tariffs. This is designed to obviate against uneconomic projects which would increase costs for all gas consumers. The policy framework allows for the appraisal of a town either on its own or as part of a regional group of towns.
It should be noted that Mullingar has been connected to the gas network for a number of years.
As regards the position for Longford, the most recent assessment was undertaken a number of years ago. Having full regard to CER’s network connections policy, Bord Gáis Networks, and more recently Gaslink, carried out a comprehensive assessment of 39 towns not already connected to the national gas network, with detailed economic analysis based on criteria outlined in the policy. The study was published in April 2010 following approval by the CER. The study included an appraisal of Longford as one of a group of towns. The Gaslink report found that 35 towns, including Longford, when appraised on an individual basis or as a group, did not qualify for connection on economic grounds.
Gaslink continues to keep under review the towns which did not qualify for connection under that study, and other towns, on an ongoing basis. The key factor which would qualify a town, or group of towns, in any future review would be a significant increase in demand for natural gas, usually resulting from the addition of a new large industrial or commercial facility.
