Dinny McGinley (Donegal South West, Fine Gael)
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Question 406: To ask the Minister for Communications, Marine and Natural Resources the plans in place to extend the gas line from the Corrib gas field to the north west; if there will be a joint initiative on a cross-Border basis between Bord Gáis and its counterpart in Northern Ireland; and if he will make a statement on the matter. [10412/05]

Noel Dempsey (Meath, Fianna Fail)
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Any intending supplier of gas to the north west is free to apply to the Commission for Energy Regulation, CER, for the necessary consent.

A preliminary evaluation in 2001 by Bord Gáis Éireann, BGE, which considered network extensions to the north west, found that none was commercially viable and even the least expensive option would cost more than what might be recovered over the lifetime of the pipeline. The CER must be satisfied that a proposal to extend the natural gas network is an economic proposition, as otherwise uneconomic projects will increase costs for all gas consumers. BGE is also required by the Gas Act 1976 to demonstrate that any pipeline investment by it will be an economic business operation.

That said, there is a long-standing Government commitment to examine the feasibility of bringing natural gas from Corrib to Sligo. The decision to grant planning permission for the Corrib onshore gas refinery and pipeline is the subject of two proceedings before the High Court and a decision will be made in April whether or not to grant leave for judicial review.

Work on preparing the specification for a feasibility study and cost-benefit analysis of possible routes to Sligo is under way. However, considering the costly nature of this study, it will not be proceeded with until there is a measure of certainty on the Corrib appeals process. Taking this into account, it is hoped the study will proceed later this year.

As regards a joint initiative of the kind the Deputy suggests, it is not clear there is a counterpart for BGE in Northern Ireland. BGE itself constructed the pipeline from Belfast to Derry. It is intended to link the two gas grids with a South-North interconnector to be put in place next year and to which the Government has agreed to give a substantial grant.