Dáil Éireann Debate, Wednesday - 6 October 2004
239 Cecilia Keaveney asked the Minister for Communications, Marine and Natural Resources the role his Department has in delivering a gas pipeline from Belfast to Letterkenny; when it is planned that the Belfast to Derry section will be complete; the timetable for the section from Derry to Letterkenny; and if he will make a statement on the matter. [23734/04]
Amharc ar fhreagra240 Cecilia Keaveney asked the Minister for Communications, Marine and Natural Resources if his Department or Bord Gáis has delivered a feasibility study in relation to having a spur of the Belfast to Letterkenny gas line taken to Buncrana, County Donegal; and if he will make a statement on the matter. [23735/04]
Amharc ar fhreagra241 Cecilia Keaveney asked the Minister for Communications, Marine and Natural Resources if he will report on the priority given to bringing a gas network into Donegal. [23736/04]
Amharc ar fhreagraI propose to take Questions Nos. 239 to 241, inclusive, together.
As the Deputy will understand neither I, nor my Department, engages directly in the natural gas market and the regulation of that market is delegated to the Commission for Energy Regulation under the Gas (Interim) (Regulation) Act 2002.
In the case of Bord Gáis Éireann, section 8 of the Gas Act 1976 requires it to demonstrate that any pipeline investment it proposes will be an economic business operation. By its nature, a sparse population of low energy users is unlikely to achieve the investment profile to justify such an undertaking and uneconomic extensions in fact would increase costs for all gas users. Equally the CER must be satisfied that a proposal to extend the natural gas distribution network, whether that proposal is from a holder or a prospective holder of a distribution licence, is an economic proposition before it will grant consent for it. As part of my objective of creating an all-island energy market, a commitment was made to allocate €12.7 million towards the development of the gas network in the North. The Belfast to Derry pipeline, to which the Deputy refers, is due for completion in October 2004 and the Gormanstown to Antrim pipeline by the end of 2006.
Under the current INTERREG Programme, the CER has commissioned the Derry to Letterkenny gas pipeline feasibility study. The report is not yet finalised. Any second phase of this project, the actual construction of a pipeline, would be dependent on the feasibility study demonstrating economic viability. There is no proposal to examine the possibility of bringing gas to Buncrana.
