Oireachtas Joint and Select Committees

Wednesday, 16 December 2015

Joint Oireachtas Committee on Transport and Communications

Additional Uses of Natural Gas: Gas Networks Ireland

9:30 am

Mr. Liam O'Sullivan:

First, I do not think there is anything that is not being said. We have come with a positive picture because that is how we see it - it is a positive picture. As regards why we are not further along the road, because we are a bit behind the curve, a fair bit of that is down to getting a general consensus that this is the right thing to do. Fuel prices have been falling, so there has not been that much focus on it. There was perhaps a view that electric vehicles would solve all our problems but they will not. They have a part to play and we are not seeking to compromise that in any way. We see absolute synergies between the two but they will not solve all the problems.

We have taken some time to get a consensus in saying that this is the right thing to do. We have run the trials. As regards some of the previous questions, it is not just us saying this is right. We have run trials with Bus Éireann and a range of private fleet operators. They all tell us that this works for them, and it is right in terms of technical performance, but they will not invest until they see a sufficient network that will allow them to go forward. That was the point raised in earlier questions, which was that people need to be sure when their vehicle is going from Cork to Dublin and gets diverted to Galway, that they can refuel. That is the practical stuff. Once we get to a critical mass, it will happen very quickly.

The incentives concerning the fuel differential are right, so small steps need to be taken. I see it as a positive picture. To be fair, all the Departments we have engaged with have been supportive of it. Based on the outcome of the trials we have run, we are largely there in terms of a consensus that this is the right thing to do. The next stage is to move on.

What happened at the climate change conference in Paris over the weekend is all positive. We are hitting it at the right time in many respects but we are hitting it at the wrong time in other respects because the oil price happens to be low at present. However, one needs to take a balanced view of that, asking what the price of oil will be relative to gas over a period rather than at a point in time. Looking back over the past ten years, it was a no-brainer across all the growth areas we have. There is a smaller gap now in terms of changing from oil to diesel or from oil to natural gas in people's homes but that will change as well.

I genuinely see it as a positive picture and I do not think there is anything hidden there.

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