Éamon Ó Cuív (Galway West, Fianna Fail)
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18. To ask the Minister for Communications, Energy and Natural Resources his plans to ensure natural gas is extended to all towns with a population of more than 10,000 or all hub towns and gateways; the towns in these categories that do not have a natural gas supply; and if he will make a statement on the matter. [3668/15]

Alex White (Dublin South, Labour)
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The development and expansion of the natural gas network is in the first instance a commercial matter for Gaslink, which is mandated under Section 8 of the Gas Act 1976, as amended, to develop and maintain a national system for the supply of natural gas that is both economical and efficient.

The Commission for Energy Regulation (CER), is statutorily responsible for all aspects of the assessment and licensing of prospective operators who wish to develop and/or operate a gas distribution system within the State under the Gas (Interim) (Regulation) Act 2002. I have no statutory function in relation to the connection of towns to the gas network.

In 2006, the CER approved a Gas Connections Policy which enabled assessment of the feasibility of connecting new towns to the gas network. In order for any town to be connected to the gas network, certain economic criteria need to be satisfied. The policy provides that the construction and operating costs of connecting a town, or group of towns, to the network are recovered through the consumption of gas and the associated network charges. The distance of a town from the gas network is the major factor determining the costs of building a gas pipeline. The anticipated industrial or commercial gas usage in the town largely determines the revenue from gas network charges which must balance the connection costs. Uneconomic gas pipeline projects would unfairly increase energy costs for all gas consumers.

Gaslink has completed three comprehensive studies to assess nearly 80 towns for connections to the gas network with the result that more than twenty new towns have been connected in recent years. Gaslink constantly reviews unconnected towns for increases in forecasted industrial energy use or where new pipelines or developments may make a town economic for a gas connection. For example construction of a gas connection for Nenagh, County Tipperary has commenced and work will begin later this year on the construction of a gas pipeline to Wexford town.

In terms of towns with a population greater than 10,000, based on the 2011 census data, there are thirty six such towns connected to the network and only six of them are currently without a gas supply: Tralee, Letterkenny, Sligo, Killarney, Enniscorthy and Wexford. Gaslink continues to keep the connection of towns to the gas network under review, having full regard to the CER's network connections policy and I have asked the company to contact the Deputy to discuss this matter in greater detail.