Vol. 409 No. 3
12 Mr. Byrne asked the Minister for Energy if he will outline the steps which have been taken to implement the commitment given in the Programme for Government to seek the best feasible link-ups with the existing Communitywide energy grids as soon as possible.
20 Mr. J. Bruton asked the Minister for Energy the way in which Ireland will benefit from the (REGEN) Programme for the extension of the natural gas supply offered by the European Community.
28 Mr. Browne (Carlow/Kilkenny) asked the Minister for Energy if he will outline the progress which has been made on the establishment of a gas pipeline network; and if he will further outline his plans in relation to the sale and marketing of that supply when it becomes available.
38 Mr. Deenihan asked the Minister for Energy if he will make a statement on the recent progress on the establishment of a gas interconnector; and if he will outline his views on the appropriate management and ownership structure of such a supply.
41 Proinsias De Rossa asked the Minister for Energy if he will outline the latest position regarding the proposed gas pipeline between this country and Britain; if any date has yet been set for the start of work; the likely completion date; the capacity of the pipeline; and if he will make a statement on the matter.
I propose to take Questions Nos. 12, 20, 28, 38 and 41 together. I assume that Deputy Browne's question relates also to the Ireland-UK gas interconnector. Planning for this gas interconnector is now at an advanced stage. There are various aspects of the project that are scheduled for execution at different times throughout the period up to the target completion date in October 1993.
The pipeline route has now been decided and will run from north County Dublin to Moffat in southern Scotland. Negotiations for a supply of gas are ongoing and engineering design is now well under way. I expect to put the project before the Government for final approval soon so that the major procurement and construction contracts can be placed. Construction should commence in March 1993.
It is the Government's intention that the pipeline will effectively be owned and operated by Bord Gáis Éireann. Initial imports will be used for electricity generation, but as indigenous reserves are depleted, increasing amounts will go to BGÉ's other markets.
Pipeline capacity is a function of both pipeline diameter and the compression installed. It will be possible to increase capacity as this is required by the installation of additional compression after the pipeline has been laid.
The project has been chosen by the European Commission for support through its REGEN initiative under which 300 million ECU have been allocated to assist five energy related projects in the European Community. A formal application to Brussels for assistance has been made but the amount of the allocation to the Irish project will not be known for some time.
Electricity interconnections are also being examined. The question of restoring the link with Northern Ireland is under constant review. Discussions are taking place between the ESB and the National Grid Company in the UK about the possibility of electricity interconnection with the UK sometime in the future.
However, the first priority of the Government at this time is to have a gas interconnector to the UK in place, which will allow us to tie in to the European gas grid in due course.
What is the estimated gross cost of the scheme and what is the maximum contribution hoped to be received from the EC fund?
The Government have not yet received an official indication as to the level of grant aid available from the EC.
Are there no percentage limits?
There has been no indication of what the percentages will be. The preliminary estimate of the cost of construction of the pipeline is £240 million in today's money.
The Minister's statement is very welcome. He has been pursuing the matter with some energy. Initially I was under the impression that things were going ahead at a rapid rate this year, but then the Minister said that construction would commence in 1993. Is that correct?
Yes.
Will it be a two-way interconnector? In other words, will we be able to import if necessary and to export if we have extra supplies?
Yes, it should be possible to operate the pipeline in either direction. Obviously, we would be importing gas until we had another major gas find. If that happened, which is to be hoped, Ireland might then be able to start exporting gas. Either situation would be met; we would be able to import when short of gas and export when we had a surplus.
Did the Minister consider allowing the distribution of the supply to be handled by an agency or body other than Bord Gáis Éireann in the interests of maximum competition?
The House has established Bord Gáis Éireann as the body responsible for the distribution of gas. In the present circumstances it is appropriate that the pipeline be controlled and operated by Bord Gáis Éireann.
I wish to pursue that point a little further. On a previous occasion during Question Time in the House I said that certain companies were experiencing difficulties because Bord Gáis Éireann are used as a source of revenue for the State and that there are questions raised about whether completely commercial considerations operated. This would be an opportunity to ensure competition.
The Deputy raised the issue but she did not prove her point. I said on that occasion that the pricing policy of Bord Gáis Éireann was to ensure that gas prices were competitive with other fuels.
