Dáil Éireann Debate, Tuesday - 17 April 2018
1162. Deputy John Deasy asked the Minister for Communications, Climate Action and Environment his plans to extend the natural gas pipeline to Dungarvan, County Waterford; if there are no plans the reason therefor; and the towns next in line for connection. [15395/18]
Amharc ar fhreagraThe factual position in relation to the routing of gas pipelines or the connection of towns to the gas pipeline network is the following. These are matters for Gas Networks Ireland, a commercial State-sponsored body under the aegis of the Minister for Housing, Planning and Local Government, and the Commission for Regulation of Utilities (CRU), the statutorily independent energy regulator, which conducts consultations on its regulatory decisions.
In relation to bringing gas supply to any new town, I am informed that such towns are evaluated in accordance with the criteria in the Connections Policy as approved and published by the CRU. This means that the cost-benefit for the connection needs to be positive i.e. the expected revenues over a period of time must exceed the projected costs for the project to be viable. The Connections Policy appraises both domestic and industrial/commercial demand, and so proximity to a major pipeline and a large industrial/commercial gas load tend to be the most significant factors in town appraisals.
I am further informed that the last assessment of this region concluded that it is not economically viable to connect Dungarvan. However, this outcome may change in the future depending on the emergence of significant new demand for gas connections in the locality.
To address a question as to whether network extensions, where economically feasible and in line with our energy policy, could contribute to regional and rural development, I have commissioned a study on the wider costs and benefits of gas network extensions, to include possible climate and decarbonisation aspects, as well as regional and rural development benefits. Independent consultants were appointed last October, and I expect that they will complete their work shortly.
