Austin Currie
Ceist:13 Mr. Currie asked the Minister for Energy if he will outline the current life of our natural gas reserves, based on current rates of use and possible increased usage.
Ceisteanna—Questions. Oral Answers. - Natural Gas Reserves.
John V. Farrelly
Ceist:47 Mr. Farrelly asked the Minister for Energy if he will outline (a) the current annual rate of offtake from the Kinsale Head gas field, (b) the current reserves and (c) the projected growth in demand which is expected by Bord Gáis Éireann.
I propose to take Questions Nos. 13 and 47 together. Two fields, Kinsale Head and Ballycotton, constitute Ireland's proven reserves of natural gas. A continuous process of study measures reserves in both gas fields. The latest studies suggest that at end March 1992 remaining recoverable reserves from both fields amount to about 700 billion cubic feet (BCF).
Based on the current and anticipated requirements of Bord Gáis Éireann, both fields will be depleted early in the next decade. In 1991, 83 BCF of natural gas was delivered from the fields. Quantities of this order will be maintained for a few years due to the installation of compression facilities on the platforms. After that the annual rates will fall off as the ability of the fields to deliver declines. In addition to supplies from the two fields, Bord Gáis Éireann's requirements for the future will also be served by new discoveries of gas or imports through the gas interconnector or by a combination of both. Prospects for growth in gas usage are excellent and the current volumes could double over the next 15 years.
Are the figures given by the Minister based on anticipated growth in gas consumption?
On future consumption.
I am referring to the level of depletion.
The level of depletion is based on the projected off-take of gas from Kinsale, which is greatly assisted as a result of the contract entered into with Marathon to put extra compression on the gasfield to extract gas, which was not in the original contract. That is the most up-to-date estimate I can make of the life of the gasfield, but it is only an educated estimate.
May I ask the Minister if, in the expected uptake of gas, he has taken into account an extension to Tipperary town where a major co-operative has made an application for supply?
That will be a matter for the board of Bord Gáis Éireann. It is my hope that the gas pipeline will, in time, be extended to supply all the major areas of population in the country, but that will depend on availability of gas and the progress made by the company in extending supply to the areas where there is already a major pipeline.
May I ask the Minister if he intends to extract from the remaining stocks in the gasfield some byproduct which would help create jobs? That seems to be the only outlet for these stocks. Is the Minister happy that we have exploited our gas reserves to the full?
I am not clear what byproducts the Deputy is referring to. Contracts were negotiated by previous Governments, and I dare not comment as to whether they were good or bad value for this country — people will form their own opinions in that regard. The company policy being followed at present is very progressive and is the best possible way in which we can maximise the benefit of the natural gas which we have at present. Hopefully further drilling programmes will result in new discoveries of gas which will add to our stocks.
Was the Minister a member of some of the previous Governments who took these decisions? My understanding is that he was.
This comes closer to home on the Deputy's side of the fence.
In the hope that we may some day see a Fine Gael influence in the Department of Energy, with consequent good effects for the nation——
The Deputy's leader was there.
——may I ask the Minister whether, in terms of the figures he has given, he anticipates the ESB using increased quantities of natural gas in the generation of electricity?
Yes, increased use of natural gas is very much part of the policy of the Electricity Supply Board in their future fuel mix usage.
That disposes of questions for today.
I would ask the Ceann Comhairle to allow the Minister to reply to my question. The referee played two minutes overtime for Tipperary last Sunday.
I would like to oblige the Deputy. If the House has no objection we will dispose of his Question No. 14.