Vol. 510 No. 1
13 Mr. Currie asked the Minister for Public Enterprise if she will initiate discussions with her counterpart in the North on the best utilisation of the Corrib field to mutual advantage, north and south, in view of the contention of an exploration company (details supplied) that the Corrib field could meet up to 50 per cent of the total demand for gas until well into the next century; and if she will make a statement on the matter. [21891/99]
My Department maintains contact on an ongoing basis with the Department of Economic Development in Northern Ireland in relation to matters of mutual interest. As energy markets are opened to competition in accordance with the European Union single market programme it is inevitable that there will be an increasing integration and interdependence between the energy markets north and south.
It was for this reason that the Department of Economic Development in Belfast was invited, in an observer capacity, to participate in the study carried out by my Department and Bord Gáis Eireann in relation to the infrastructure options to meet future gas demand until 2025. This "Gas 2025" study considered a number of gas supply options and concluded that the optimal solution on cost and other grounds for the future incremental supply of the northern and southern markets with gas from or through the UK would be to replicate the existing Moffat-Loughshinny pipeline without incorporating a North-South link.
An economic analysis subsequently commissioned by my Department of the various Gas 2025 options also had regard to the changing circumstances since the Gas 2025 study was launched, in particular developments in relation to the Corrib field and a proposal for a Belfast/Dublin gas pipeline. This analysis confirmed the findings of the Gas 2025 study but concluded that a commitment should not be made to future infrastructure pending further clarification of the potential of the Corrib discovery. Supply constraint considerations will require that key decisions be taken next year. The report of the economic analysis and other relevant material is on my Department's website.
The potential impact of Corrib is dependent, in the first instance, on the actual size of the discovery and, in the second, on a decision by the owners on the means by which the field will be developed commercially. This will require clarity in relation to the possible landing points and pipeline routing options. It is premature to say whether a north-south link might be an economic prospect as a part of any new pipeline configuration required to exploit the discovery.
It is my understanding that a third appraisal well will be drilled in the Corrib field early next year before a decision will be taken on the commercial development of the field. In circumstances where this decision has not yet been taken, I have to look upon suggestions that the field could meet up to 50 per cent of the total demand for gas until well into the next century as an exciting prospect but unduly speculative as a basis for a formal bilateral initiative of the kind envisaged by the Deputy.
My Department and the Department of Economic Development in Northern Ireland will continue to maintain close contact in this matter. I am open to meeting my Northern Ireland counterpart, as necessary, in this matter.
Having listened to that reply I wonder if it is possible that there is less enthusiasm and commitment on the part of this Government to an all-Ireland energy market than there is on the part of the British Government and the Northern Ireland Office. Is the Minister aware of the document issued by the Department of Economic Development in Northern Ireland entitled "Strategy 2010" where it is recommended that future energy investment decisions should be made in an island of Ireland energy market; machinery for its creation should be established as a priority and they should best examine how such a market could be established? The people in Northern Ireland—
A question, Deputy, please.
Is the Minister telling us that the British Government and the Northern Ireland Office see this as a priority whereas he and his Department do not? What is his response to the Northern Ireland proposals for the establishment of a steering group, possibly under joint ministerial control north and south, to consider the implications of an all-Ireland market? Will he tell us his response to the proposal that the strategy group prepares a preliminary report by February next year? What is his response to the proposal by the Minister for the Economy in the North that there should be a joint action plan for publication by February 2001 on the agreed steps to create an all-Ireland energy plan?
Will he tell us that his commitment and enthusiasm for this are at least as great as that of the British Minister responsible for these matters in the North?
I have long known of, and admired, Deputy Currie's passion for positive interaction between North and South. This Government's commitment at all levels to positive interaction and social and economic matters, North and South, is total. The senior Minister in the Department, Deputy O'Rourke, had a particularly strong rapport with the then Secretary of State, Mo Mowlam.
A lot of liquid lunches.
One.
In the context of the Deputy's question she had a rapport and ongoing liaison on the subject matter of the Deputy's question. The Minister and I met the Secretary of State and Minister Paul Murphy with our respective officials.
As I stated in my reply, we discussed this thoroughly at that meeting and explained the complexities. Our officials met subsequently and that contact is ongoing. I assure the Deputy of the Government's commitment to ongoing and positive contact with our counterparts in Northern Ireland in the field of energy generally. Security of supply is of paramount importance. Decisions must be taken in the short-term in the context of the existing constraints, including the depletion of the Kinsale Head gas field.
The time for priority questions has expired.
No significant output from that can be advised beyond 2004. The commitment is there and I assure the Deputy it will continue.
Given the Minister's reply—
We have already gone a minute over time on this question, which the Chair should not have allowed.
The Minister of State gets away with that waffle and I am not entitled to even a short remark.
All those liquid lunches with Mo Mowlam.
I gave a comprehensive reply.
