asked the Minister for Energy the up-to-date position regarding gas exploration in west Cavan.
Ceisteanna—Questions. Oral Answers. - Natural Gas.
11.
Exploration for gas in west Cavan is being carried out under an exclusive exploration licence, which covers part of the north west carboniferous basin and includes approximately 570 square kilometers in county Cavan. Under the terms of this licence, two exploration wells were drilled in 1984, one at McNean, County Cavan and the other at Drumkeeran, County Leitrim. Only minor indications of gas were encountred in each case.
Apart from assessing the results of their recently completed drilling programme in the area, of which these two wells were a part, the licensees are now undertaking detailed analysis of additional remotely-sensed data to enable them to decide what future exploration work they will propose to carry out. Meanwhile, in accordance with the provisions of their licence, approximately 50 per cent of the original licensed area has been relinquished.
In view of the interest shown by the Economic and Social Committee of the EC to provide a gas pipeline from Dundalk to Sligo, is there any danger that there will be a holdup in that programme because of that survey?
No. I do not see any danger of a delay.
It will proceed?
12.
asked the Minister for Energy if he will outline his plans for bringing natural gas to the dairy co-operatives in the Cork region; the names of the co-opertives to be serviced; and the timescale involved.
A supply of natural gas to Limerick was approved by the Government on 22 October 1985. As well as a pipeline to Limerick city, the project approved by the Government also provides for a supply of natural gas to three dairy co-operatives en route, that is, Mitchelstown Co-op, Ballyclough Co-op in Mallow, and Golden Vale Co-op in Rathluirc, County Cork. Construction of pipelines to supply the three co-operatives is expected to be completed in the second half of 1986.
I am sure the Minister is aware that there are also a number of co-operatives in the western part of County Cork. Has he any plans for the extension of a supply of natural gas to those co-operatives?
I cannot tell if there are any plans at present, but if those co-ops are having discussions with Bord Gáis Éireann, we will try to expedite the negotiations and discussions, as we have done in the case of the three co-opertives mentioned.
It is only right that I should thank the Minister for looking after the towns of Mitchelstown and Mallow, but what is the pricing structure? Is it coal price equivalent or will there be a preferential price for the food processing industry because it is vital that they have a cheap source of energy?
There will be no preferential pricing for co-operatives. Pricing will be as laid down in the Government guidelines published in 1982.
What are the guidelines laid down by the Government?
I think it would be to everybody's disadvantage, and certainly to the taxpayers' disadvantage, if we were to make the guidelines commonly known because negotiations are taking place in relation to bulk usage. It is in everybody's interest if that information remains confidential to Bord Gáis Éireann and the Department of Energy.
Have the Department an input into the pricing structure for the supply of natural gas to the co-opertives?
The pricing guidelines were approved by the Government, transmitted from the Department of Energy to Bord Gáis Éireann, and it is their function to implement the pricing guidelines in their negotiations with interested industries.
Since natural gas is in State ownership and the taxpayers have an involvement, would the Minister be prepared to make a statement to the House on the pricing he has agreed with the companies involved?
No, I am not prepared to make a statement to the House.