Vol. 521 No. 4
4 Mr. Currie asked the Minister for Public Enterprise when a decision on the construction of additional gas line capacity into the State will be made; if the Department has completed its analysis on whether a second gas pipeline linking this State to Scotland, as proposed by Bord Gáis Éireann, is compatible with a new pipeline from Belfast to Dublin; and if a decision on which of these pipes is to proceed will be necessary. [17628/00]
Bord Gáis Éireann has applied for consent to build a second gas interconnector from Scotland but has yet to furnish the necessary detailed supporting material. I am aware that in Northern Ireland three separate proposers are working on a North-South gas project and there is a further one proposed for east-west. One of these three, Premier Transmission Limited, has just announced that, following an open season process on its proposed Belfast-Dublin pipeline, it is proceeding with the next phase of the project involving preliminary engineering and environmental work on the route. The development potential of the Corrib field is also highly relevant to the question of additional gas capacity.
My primary interest is in seeing that the next increment of gas capacity is put in place in time to meet market demand. For the long-term, I also want to ensure gas supply is as competitive as possible. Consultants are advising me on an economically efficient approach to pipeline authorisation for a liberalised market and on gas transmission tariffs. I expect their final report shortly which I intend to publish. This report and the decisions made on foot of it will greatly clarify the context of decisions about major pipeline projects. I intend to take this matter forward without unreasonable delay and it is very necessary that I do so.
As to the specific question, if it can be assumed that the Corrib field is commercial and will be developed, it is unlikely that two further projects will proceed in a similar timeframe. I would prefer that, as far as possible, market mechanisms will determine which projects will proceed and when, once the policy background has been clarified.
The apparent lack of urgency in the Minister of State's reply concerns me. Does he agree failure to have an adequate gas supply will undermine liberalisation and deregulation in the electricity market? Will he try to be a little more specific about when a decision on the construction of additional gasline capacity into the State will be made? Will he, for example, try to ensure the decision on the additional gas capacity is made by the end of the year? The Minister of State referred to a recent statement which I assume is that made by Premier Transmission Limited. Is he aware that it referred to the fact that the combined expressions of interest was such a positive response from the marketplace that the board of Premier Transmission Limited has decided to move to phase two of this project, intends to sign firm transportation contracts with customers by the end of the year and award the contract for construction of the pipeline early in the second quarter of 2001? Is the Minister of State saying this is feasible? Will he try to be more specific in regard to the questions that were asked?
Premier Transmission Limited is but one player. A number of proposals are under consideration, including a second gas interconnector between Scotland and Ireland, a Wales-Ireland interconnector, a Belfast-Dublin pipeline to which the Deputy referred, a pipeline from Dublin to Galway and Limerick and a pipeline from the Corrib gas field off the west coast to link up with the BGE pipeline. We do not intend that there will be a failure. There is no failure to realise the implications of a delay, which the Deputy has correctly pointed out. The security of supply is paramount in my considerations and those of my senior colleague, the Minister for Public Enterprise. We are being advised by consultants on this issue and regardless of the finalisation of the Corrib commercialisation, decisions will be taken by year's end.
I thank the Minister of State for the assurance that decisions will be taken before the end of the year. Does he agree they should be taken irrespective of whether Enterprise Oil makes a decision on bringing its gas find ashore? Is the emphasis on a North-South pipeline as great as it was when the then Secretary of State, Mo Mowlam, had a meeting with the Minister for Public Enterprise on this subject? Will the Minister of State confirm that the pressure in regard to North-South co-operation is as great from the North as it was when Mo Mowlam was in office?
I am happy to respond positively to the Deputy and I know that subject is close to his heart. Since the Minister met Mo Mowlam, she and I have met Sir Reg Empey to discuss this issue and at that meeting we put in place an arrangement whereby Department of Public Enterprise officials and their counterparts in the Department of Enterprise, Trade and Investment in the North would meet. They have met regularly to forward this issue and to cement the rapport we established with Mo Mowlam and the Minister of Enterprise, Trade and Investment, Sir Reg Empey. The group's work is ongoing, positive and productive and it will meet again as early as next Wednesday.
