Phil Hogan
Ceist:247 Mr. Hogan asked the Minister for Public Enterprise if she will give support for the extension of the natural gas grid to Callan, County Kilkenny; and if she will make a statement on the matter. [21958/01]
Written Answers. - Natural Gas Grid.
Under the Gas Acts, 1976 to 2000, Bord Gáis Éireann, BGE, has statutory responsibility to develop and maintain an efficient and cost effective gas transmission and distribution system. Extensions to the transmission system require my consent whereas extensions of the distribution network fall exclusively within the day-to-day responsibilities of the board.
BGE has informed me that two surveys have been completed by Bord Gáis in Callan, County Kilkenny. The surveys were completed in June of 2000 and 2001. The expansion of the gas network into Callan, would require the construction of a transmission pressure reduction installation from the Cork to Dublin pipeline, and the associated large feeder and distribution mains to the town. The costs involved would be so significant that the project would not be financially viable at this time.
The BGE team is monitoring all potential new housing and industrial/ commercial projects for the Callan area at present and this will continue over the next few years.
Dinny McGinley
Ceist:248 Mr. McGinley asked the Minister for Public Enterprise if a decision to extend the provision of natural gas to County Donegal has been made; if so, the areas within Donegal which will be included in the provision of natural gas; and if she will make a statement on the matter. [22144/01]
Earlier this year the Government approved, in principle, the extension of the gas network to the north west. Following its initiative to make £10 million available towards the development of the Northern Ireland gas network, which will include a pipeline from Belfast to Derry, the Government has decided to move ahead with the next step in extending the transmission network to the north west. This involves Bord Gáis Éireann being asked to carry out a detailed engineering study which will include a pipeline route from Derry to Letterkenny.
Based on preliminary analysis already carried out, the construction of a pipeline between Derry and Letterkenny would require grant aid, as the level of demand for gas is not sufficient to pay for the capital cost of the pipeline. The detailed study will identify the level of grant aid necessary for the pipeline. The provision of such grant aid will also require state aid clearance from the European Commission.