Dáil debates

Thursday, 13 June 2013

Topical Issue Debate

Sale of Strategic Energy Assets

12:50 pm

Photo of Noel HarringtonNoel Harrington (Cork South West, Fine Gael) | Oireachtas source

I thank the Ceann Comhairle's office for selecting this issue for discussion and the Minister, Deputy Pat Rabbitte, for coming to the House to deal with it.

Late last week Phillips 66, a subsidiary of Conocophillips, announced through Deutsche Bank its intention to put the Whiddy Island oil storage terminal and Whitegate Oil Refinery on the market. This has caused genuine concern among people in Cork, particularly those employed at the Whiddy and Whitegate terminals. At a national level these two facilities are of strategic importance to our oil and gas security. We have previously discussed the future of refining in this country. While both facilitates are separate in terms of operation, they are equally important.

The Whiddy Island terminal was set up by Gulf Oil and commenced oil storage operations in the 1960s. It has had a chequered history since, most notably the Betelgeuse disaster in 1979 which resulted in the loss of 50 lives. I understand the jetty has still not been repaired. The State has had an interest in the Whiddy oil terminal since. The development of a single point mooring has resulted in increased activity in recent years. International experiences such as the turmoil in north Africa, in particular Libya, have led to increased use of the Whiddy oil terminal for transshipping fuel and the storage of crude and other oil products which, in turn, has led to the creation of hundreds of jobs. The proposed sale of the terminal by Phillips 66 has, therefore, caused some concern.

The Whitegate Oil Refinery, while not in my constituency but of equal strategic importance to the country, is also up for sale. The people directly employed at these facilities need reassurance from the Minister in regard to the Government's future policy for the oil storage facility, the national oil reserves on Whiddy Island and at other locations around the country and, critically, any imminent decision on the future of refining in this country.

As regards increased activity in oil and gas exploration off the south and west coasts, the Minister might elaborate on whether there could be a tie-in between storage, refining and the exploration industry. It is critically important for the future energy security of the State that he make a statement on the future of these facilities.

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