Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

359. To ask the Minister for Communications, Energy and Natural Resources the proposals to extend the natural gas supply to Cavan town; and if he will make a statement on the matter. [3679/16]

Alex White (Dublin South, Labour)
Link to this: Individually | In context | Oireachtas source

The development and expansion of the natural gas network is a commercial matter for Gas Networks Ireland (GNI), the successor of 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. I have no statutory function in relation to the connection of towns to the gas pipeline 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.

Under the 2006 network connections policy 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, including Cootehill in Co. Cavan.

As the successor to Gaslink, GNI will continue to review the towns which did not qualify for connection in 2010 as well as other towns. 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 as a result of the addition of a new large industrial or commercial facility.

In 2015 the CER hosted a consultation on a submission received by it from GNI proposing revisions to the existing gas connections policy, as mentioned above. The CER published its decision (CER/15/227) on 30th September 2015 and this is available on its website.