Dáil Éireann Debate, Tuesday - 24 March 2015
928. Deputy Michael Creed asked the Minister for Communications, Energy and Natural Resources his plans to ensure the continuation of effective competition in the liquefied petroleum gas, LPG, market after the closure of the Whitegate refinery in 2016; the manner in which he will ensure continued access to LPG for all providers in the market after the closure of Whitegate; and if he will make a statement on the matter. [11236/15]
View answer934. Deputy Michael Creed asked the Minister for Communications, Energy and Natural Resources his views on the future operation of the Whitegate oil refinery and the implications for competition in the bulk liquified petroleum gas market if Whitegate closes; and if he will make a statement on the matter. [11235/15]
View answerI propose to take Questions Nos. 928 and 934 together.
The Whitegate Refinery is operated by a private company, Phillips 66. The company recently sold the Whiddy Island oil storage facilities in Bantry to Zenith Energy Ireland Limited but continue to operate the refinery at Whitegate. The company has confirmed that no decision has yet been taken in respect of its future.
In July 2013, a report on the strategic case for oil refining on the island of Ireland, commissioned by my Department, was published. The study found that the existing oil import facilities on the island of Ireland taken as a whole offer a robust infrastructure that could provide comfortable alternatives in the event of a serious disruption at any one of the six principal oil ports. The oil ports could supply the total oil demand, regardless of any future decisions on the operation of Whitegate as either a refinery or terminal. The development of the Irish motorway network has been significant in improving oil security of supply in recent years, facilitating the transport of oil from key ports throughout the island. Work with counterparts in Northern Ireland is ongoing with a view to enhancing contingency planning in both jurisdictions.
Following publication of the report, the Government's primary conclusion on the strategic case for oil refining is that the presence of an operational refinery on the island provides flexibility, enhancing the options available to the State in the event of an oil supply disruption, by providing an alternative source of product thus mitigating a complete reliance on product imports.
In light of that conclusion, the Government had agreed that my Department should liaise with the Irish oil industry and appropriate public bodies to determine any policy options that might facilitate the commercial future of refining in Ireland. I expect to be in a position to brief Government on the available policy options shortly.
The Irish oil industry is fully privatised, liberalised and deregulated and there is no price control on petroleum products in Ireland. The retail price of LPG is therefore not a matter in which I have any role or function. While the regulation of natural gas tariffs is a function of the Commission for Energy Regulation (CER), the CER has no function in regard to the setting of the retail price of LPG, which is a by-product of oil. While the CER has responsibility for the regulation of the natural gas market and has a safety responsibility for LPG distribution pipelines, it does not have any function or responsibility as regards commercial arrangements between LPG suppliers and their customers.
