Pat Rabbitte (Dublin South West, Labour)

As Deputy Ferris knows, I have consistently welcomed the proposal by Shannon LNG to construct a liquefied natural gas, LNG, terminal near Ballylongford, County Kerry. Such a facility, together with the bringing onshore of Corrib gas would provide important security of gas supply for Ireland. I met the promoters of the project soon after taking office last year and both my Department and the Commission for Energy Regulation, CER, are in regular contact with Shannon LNG. The House will be aware from my replies to previous parliamentary questions of the meeting last December between the Taoiseach, the Minister for the Arts, Heritage and Gaeltacht Affairs, Deputy Deenihan, Deputy Spring and myself and company representatives from Shannon LNG and of the general discussion at that meeting.

The Commission for Energy Regulation has been engaged in an extensive consultation process on the matter over some time and has had considerable interaction with Shannon LNG and other stakeholders. Decisions on the regulatory treatment of the gas interconnectors and tariffing are statutorily a matter for the CER under the enactment of the Gas (Interim) (Regulation) Act 2002. The CER, as the independent energy regulator, is statutorily charged with a duty to protect energy consumers, ensure security of supply and support competitiveness. The regulator has a duty to ensure new sources of gas for the Irish market do not result in unwarranted increases in the price of gas to business or domestic consumers.

I fully acknowledge the complexity of the decision which the regulator must make and the need for various difficult balances to be struck. Together with all players and potential players in Ireland's gas market, Shannon LNG has a key commercial interest in the outcome of the regulator's ultimate decision on this complex regulatory question. Given the complexities, there are many different perspectives on this issue.

On 1 March the Commission for Energy Regulation held a further public forum for stakeholders. This followed publication on 17 February of its proposed decision paper on the issue of the regulatory treatment of the gas interconnectors. Stakeholders have a further opportunity to respond to the regulator by 16 March on the matters raised in the proposed decision paper. At the end of this period, the CER will assess all comments received and publish a final decision. I understand the regulator has indicated a decision will be made by the end of April.

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