Dáil Éireann Debate, Wednesday - 24 June 2015
263. Deputy Martin Ferris asked the Minister for Communications, Energy and Natural Resources if the Government has plans to provide a gas pipeline connection to County Kerry, in view of the fact that counties Kerry and Donegal are the only two counties in the State without a gas connection. [25242/15]
View answerThe development and expansion of the natural gas network is in the first instance a commercial matter for Gas Networks Ireland (GNI), formerly 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 pipeline network.
In 2006, the CER approved a Gas Connections Policy which enabled assessment of the feasibility of connecting new towns to the gas network. In order for any town to be connected to the gas network, certain economic criteria need to be satisfied.
The policy provides that the construction and operating costs of connecting a town, or group of towns, to the network are recovered through the consumption of gas and the associated network charges. The distance of a town from the gas network is the major factor determining the costs of building a gas pipeline. The anticipated industrial or commercial gas usage in the town largely determines the revenue from gas network charges which must balance the connection costs. Uneconomic gas pipeline projects would unfairly increase energy costs for all gas consumers.
Gaslink completed three comprehensive studies to assess nearly 80 towns for connections to the gas network with the result that more than twenty new towns have been connected in recent years.
Under its New Towns Analysis Phase 3 report, published in 2010, the County Kerry towns of Listowel, Killarney and Tralee were assessed, as was the County Donegal towns of Ballyshannon, Bundoran, Donegal, Lifford and Letterkenny. However, the Gaslink review found that these towns did not qualify for connection on economic grounds.
As the successor to Gaslink, GNI will continue to review the towns which did not qualify for connection in 2010 as well as other towns. 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 as a result of the addition of a new large industrial or commercial facility.
The CER recently hosted a consultation on a submission received by it from GNI proposing revisions to the existing gas connections policy, as mentioned above. As the consultation period has ended, a decision is expected shortly.
