Vol. 540 No. 1
180 Mr. G. Reynolds asked the Minister for Public Enterprise the reason her recent announcement regarding the natural gas plan for the west of Ireland has not included details of the proposed extension to the north-west; and when the Government will announce details of the natural gas service to the north-west. [19537/01]
The development of major natural gas pipelines usually takes about three years from conception to completion. Bord Gáis Éireann began work on developing the extension to the west some two years ago and it is scheduled for completion next year. The Deputy will be aware that the Government decision on extending the gas network to the north-west was made earlier this year and will appreciate that the development plans are at an early stage.
Last week my Department received a copy of a report commissioned by Bord Gáis Éireann on the possible routes of an extension of the natural gas network to the north west. The report makes clear that none of the possible route options would be commercial in its own right and that some form of assistance, either in the form of grant aid or an increase in the gas transmission tariff would be required to offset the viability deficit. I have made it clear on previous occasions that I do not favour assisting the development of uncommercial extensions to the gas network by means of an increase in the transmission tariff. This would place the burden on existing gas consumers and would have a detrimental effect on national competitiveness. My strong preference is for such uncommercial extensions to be considered on the basis of funding being made available in an open and transparent way.
My Department will examine the report commissioned by BGÉ in the context of the wider regional development, economic and environment benefits of bringing gas to the north west, the levels of grant aid associated with the various route options and the implications of the EU State aid requirements.
In considering the question of extending the gas network to the north-west, I am looking closely at developments in Northern Ireland. BGÉ and Questar have made an application to the Northern Ireland authorities for the construction of two pipelines, one from Belfast to Derry and another from Gormanston to Belfast. This opens up the possibility of getting gas to the north west from Northern Ireland and this option is being examined along with the other options for extending the network to the north west as a matter of priority.
