I had a meeting with Dr. Mowlam on 3 February 1999 in the context of furthering cross-Border co-operation and meeting the infrastructural requirements of the growing demand for gas on both sides of the Border by the provision of a North-South interconnector. The Minister of State, Deputy Jacob, and Mr. Paul Murphy, M.P., the British Minister of State, were also present.
The meeting focused on how best to cater for the growing demand for natural gas for consumers both North and South and how to provide enhanced security of gas supply for the whole island. We agreed that the issue of constructing a North-South gas interconnector would be studied in greater detail by officials and experts from both sides and to have a further meeting on the matter in Belfast.
Prior to the meeting Dr. Mowlam had made contact with the Taoiseach and me about a proposal by KeySpan, a US energy company, and British Gas to meet the growing demand for natural gas on both sides of the Border. The proposal comprises the provision of a North-South gas interconnector, backed up by increased compression on the existing Scotland-Northern Ireland interconnector and, if long-term gas demands so required, the building of a second Scotland-Northern Ireland interconnector at a later stage. At the request of Dr. Mowlam I agreed to extend an economic evaluation of the provision of a second Scotland-Dublin interconnector – the optimal solution to the growing demand for gas – to include the Keyspan-British Gas proposal.