Written answers

Thursday, 10 March 2005

Department of Communications, Energy and Natural Resources

Natural Gas Grid

4:00 pm

Photo of Bernard AllenBernard Allen (Cork North Central, Fine Gael)
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Question 85: To ask the Minister for Communications, Marine and Natural Resources if he has satisfied himself regarding the availability of natural gas supplies in the future; and if he will make a statement on the matter. [8322/05]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 118: To ask the Minister for Communications, Marine and Natural Resources if he has satisfied himself regarding the availability of natural gas supplies in the future; and if he will make a statement on the matter. [8526/05]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 85 and 118 together.

World gas resources can easily meet projected demand. Proven reserves have outpaced production for the past 25 years and equal about 66 years of current production. While it is clear that the geographic sources of gas for north west Europe will change over coming years, there is no particular threat to Irish supplies. The market is close to being fully liberalised and there will be several suppliers. The Kinsale field continues to provide Ireland with some supply of gas and supplies coming from the Corrib and Seven Heads fields will reduce Ireland's import demands in the coming years.

There is adequate infrastructure capacity in place to meet import requirements for many years ahead. Under section 19 of the Gas (Interim) (Regulation) Act 2002, the Commission for Energy Regulation is required to prepare and publish an annual forecast of capacity, flows and customer demand on Ireland's natural gas system over a seven year period. The 2004 capacity statement was published on 12 November and set out a range of possible demand scenarios which may be expected to arise over the coming years.

The gas capacity statement indicates that our infrastructure is sufficiently robust to cater for the majority of scenarios modelled. Only in the case of the highest demand forecast, in tandem with delays to the coming on stream of indigenous supply sources, would reinforcements to the infrastructure require to be envisaged. The CER is working with Bord Gáis, the transmission system operator, to investigate the requirements for reinforcing the onshore Scotland system, should the need arise.

My Department will continue to monitor gas supply.

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