The Dublin-Belfast gas pipeline project was discontinued in 1984 following the withdrawal of the British Government from the project. Subsequently, the EC Commission in December 1987 approved the Special Border Areas Programme 1986-1990 which was a special Community regional development measure to improve the economic and social situation of the Border areas. The amount of ERDF aid made available under the programme was about £24.8 million. Of this £11.7 million was to be devoted to the provision of a natural gas pipeline from Dublin to Dundalk, County Louth; a further £5 million aid was held in reserve to cover the extension of the gas supply westward if more detailed viability studies indicated that this was economically justified. The remaining £8.1 million in aid was devoted to measures for tourism; these included promotional activities — £0.6 million — amenities and infrastructure £4.5 million and the improvement of minor roads giving direct access from primary routes to tourist centres, including signposting, £3 million.
The programme provided that any part of the £5 million reserve for the western extension of the pipeline not used for that purpose would be re-allocated to finance measures under the tourism-based part of the programme.
The viability of the western extension of the pipeline is still being considered by the steering committee for the programme and the responsible agencies, and a decision on whether to proceed with the western extention or to reallocate aid to measures under the tourism based part of the programme will be made in the light of that examination. A decision on this matter is expected to be made shortly.