Pat Rabbitte (Dublin South West, Labour)
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I have consistently welcomed the proposal by Shannon LNG to construct a LNG terminal near Ballylongford, County Kerry. Such a facility, together with the bringing onshore of Corrib Gas would provide important security of gas supply for Ireland. I met the promoters of the project soon after taking office last year and both my Department and the Commission for Energy Regulation (CER) are in regular contact with Shannon LNG.

Most recently, the Taoiseach, myself, Minister Deenihan and Deputy Spring met with Shannon LNG on 21 December last. The meeting was a timely opportunity to review the state of play in relation to the project and to underline the Government's very positive interest in the potential investment. The meeting also discussed the central concern of Shannon LNG which is to obtain regulatory certainty at the earliest opportunity in relation to the future pricing and treatment of Ireland's two gas interconnectors. Together with all players and potential players in Ireland's gas market, Shannon LNG has a key commercial interest in the outcome of CER's ultimate decision on this very complex regulatory question and given the complexities there are many differing perspectives on what the decision should be.

The CER itself has been engaged in an extensive consultation process on the matter over the last number of months and has had considerable interaction with Shannon LNG itself as well as with all key stakeholders. In line with the stated need for all interested parties, including Shannon LNG, to have clarity and certainty on the future regulatory regime as soon as possible, the CER had originally signalled that it would come to a decision last autumn. The process has been delayed, regrettably, by Shannon LNG's own decision to lodge a number of complaints with the European Commission. This further delay in the process was discussed with Shannon LNG at the meeting on 21 December as was Shannon LNG's own particular perspective on the regulatory issues for decision by CER.

I want to remind the House that decisions on the regulatory treatment of the gas interconnectors and tariffing are statutorily a matter for the CER under the enactment of the Gas (Interim) (Regulation) Act 2002. The CER, as the independent energy regulator has a remit to protect energy consumers, ensure security of supply and support competitiveness. The CER has a duty to ensure that new sources of gas for the Irish Market do not result in unwarranted increases in the price of gas to business and domestic consumers.

I fully acknowledge the complexity of the decision which CER has to make and the need for various difficult balances to be struck. I very much hope that CER will be in a position to come to its decision next month thus bringing the regulatory certainty which Shannon LNG has repeatedly sought. I understand that CER are actively considering one further public consultation forum of stakeholder parties in the coming weeks. Given the multiplicity of perspectives on the matter, I am sure all stakeholders including of course Shannon LNG would welcome such a forum.