Ivor Callely
Ceist:70 Mr. Callely asked the Minister for Transport, Energy and Communications the Government's policy on Whitegate and Whiddy oil refinery; and if he will make a statement on the matter.
Written Answers. - Whitegate and Whiddy Oil Refinery.
The Programme for a Partnership Government stated that there would be investment to upgrade the Whitegate Refinery in order to remove the cost penalty from the Irish economy. The timescale for achieving this objective was delineated by the Government's decision in response to the recommendations of the Culliton and Moriarty reports that the mandatory off-take of petroleum products from the refinery at cost-recovery prices must be terminated by the end of 1996 at the latest.
The Irish National Petroleum Corporation is currently in the course of implementing a commercialisation plan involving investments of £26 million and marketing initiatives which will enable the refinery to compete at market prices from 1996. A joint venture proposal to carry out a major upgrade of the refinery so that it can operate on a technological par with modern European refineries is also being considered. For reasons of commercial confidentiality, further details of this proposal cannot be released at this time.
The storage of crude oil at Whiddy Oil Terminal continues to play an important role in ensuring that our obligations to hold strategic oil stocks under EU legislation and International Energy Agency agreements are met. The Government and the Irish National Petroleum Corporation are committed to exploring opportunities for resuming commercial activities at the terminal.