Pat Rabbitte (Dublin South West, Labour)

The Corrib gas field will strengthen Ireland's security of energy supply and at peak production will provide approximately 60% of Ireland's annual gas needs. Completion of the Corrib field development works by the developer is the principal factor that will determine the date for first gas. Pending such completion, it is not possible to definitely state when gas from the Corrib field will become available. The developer is in receipt of all statutory permits relevant to the construction of the Corrib gas project. Works on all elements of the development, with the exception of the onshore element of the Corrib pipeline, are essentially complete. Works in this regard commenced in July 2011 and oversight of them is being undertaken by the appropriate authorities - Mayo County Council, the Department of the Environment, Community and Local Government and my Department - in the context of their respective consents. It is estimated that construction of the onshore section of the pipeline, which includes a 5 km tunnel, which began last year, will take approximately three years. First gas cannot, therefore, reasonably be anticipated before 2014.

With regard to how competitive the price of Corrib Gas is expected to be, Deputy Durkan should note that developers of new sources of gas price their supplies in keeping with the competitive nature of the market. I have no statutory function in the setting of the price of gas. Responsibility for the regulation of the gas market is a matter for the Commission for Energy Regulation, which is an independent statutory body.

In terms of the contribution the development in question will make to economic recovery, as already alluded to, it can be expected that Corrib gas will improve security of gas supply. This is of economic importance in light of Ireland's widespread use of natural gas, including for a significant element of energy generation. In addition, Deputy Durkan may be aware that profits from petroleum production arising from exploration licences granted prior to 2007 are taxed at a rate of 25%. This is the rate that will apply in the case of profits from the Corrib field.

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