Derek Nolan (Galway West, Labour)
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832. To ask the Minister for Communications, Energy and Natural Resources his plans to make gas available in a town (details supplied) in County Galway; to put in place the necessary infrastructure; and if he will make a statement on the matter. [13983/15]

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.

The CER, in 2006, approved a new network connections policy, which created the opportunity to reassess the feasibility of connecting certain towns to the gas network. In order for any town to be connected to the gas network, certain economic criteria need to be met as a prerequisite. The policy framework provides that, over a certain period, the costs of connecting the town to the network are recouped through the actual consumption of gas and the associated tariffs. This is designed to obviate against uneconomic projects which would increase costs for all gas consumers. The policy framework allows for the appraisal of a town either on its own or as part of a regional group of towns.

Under the 2006 network connections policy, which included a review of the feasibility of connecting towns to the natural gas network in Galway/Mayo, the CER made the decision to allow the network to be extended to eleven of these towns, including Athenry. Prior to the roll out of gas to each town, a detailed analysis of the loads within the town and the revenues associated with them is carried out. There is also a requirement to secure a certain level of customers prior to the development commencing. The gas network has been extended to eight of these towns. Work is ongoing to secure economic loads in the three remaining towns, i.e. Athenry, Knock and Balyhaunis, prior to the commencement of construction. To date, the projected loads are insufficient to justify commencement of construction.

Gaslink continues to keep under review the towns which did not qualify for connection under that study, and other towns, on an ongoing basis. The key factor which would qualify a town, or group of towns, in any future review would be a significant increase in demand for natural gas, usually resulting from the addition of a new large industrial or commercial facility.

The CER recently organised a consultation on a Gaslink submission to it on revisions to the existing network connections policy, as mentioned above. The CER is currently reviewing the submissions received during the consultation period which closed on 13 March 2015.