Delivery of the first supply of gas through the Ireland-UK interconnector pipeline took place in December last. For the first time Ireland has security of supply in the event of a disruption to our supplies from the Celtic Sea. The interconnector pipeline also provides us with an alternative source of supply when supplies from the Kinsale Head and Ballycotton fields begin to tail off from 1997 onwards and run out early in the next decade.
When this project was first being considered a comprehensive feasibility study of the project was undertaken. This study showed that over the life of the pipeline an economic return on the investment would be earned and that it would be superior in economic terms to alternative options designed to ensure security of supply while at the same time keeping gas competitive with alternative fuels.
The European Commission is satisfied as to the economic viability of the project, and has grant-aided the project at 35 per cent of eligible cost from its REGEN initiative. Some 102 million ECU has been paid so far. A final tranche will be paid when the last elements of the project are complete and the final accounts prepared.