asked the Minister for Transport and Power if his attention has been drawn to reports to the effect that if offshore gas finds are to be used mostly to generate electricity it would be wasteful and that it would be a more profitable and intensive use of gas to produce fertiliser and petro-chemical products.
Written Answers. - Offshore Gas.
270.
I assume that the Deputy is referring to criticisms of the decision to allocate part of the reserves of natural gas from the Kinsale Head field for the generation of electricity. The Deputy will appreciate that following the energy crisis of 1973-74, it was essential, having regard to our heavy dependence on imported oil, to ensure the greatest possible security of our sources of energy supply. The allocation of approximately 72 million cubic feet of natural gas per day to the ESB will enable the board to provide generating capacity of about 500 megawatts that would otherwise have to be provided on the basis of imported oil. This diversification in the fuel sources of the ESB, on the basis of our own natural gas, will effect a considerable improvement in the security of the board's generating capacity and will be a valuable safeguard against the effects of any future interruption in oil supplies.
A further consideration is that the enormous investment required to bring the gas ashore, and the need to remunerate this investment as early as possible at economic rates, made it imperative to find a ready market with a high rate of offtake from the outset. A market of this order could be provided only by allocating the gas to large-scale users such as the ESB and NET. The demand for town gas at the current levels would not provide such a market and a rapid expansion of the gas industry to meet the scheduled date of delivery onshore would not be feasible.
If there should be further finds of natural gas in substantial quantities, careful consideration will be given to all potential uses of the gas before decisions are taken as to the allocation of the gas.