Written answers

Thursday, 2 February 2017

Department of Communications, Energy and Natural Resources

Gas Networks Ireland

Photo of John BrassilJohn Brassil (Kerry, Fianna Fail)
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323. To ask the Minister for Communications, Energy and Natural Resources if Gas Networks Ireland has carried out a cost-benefit analysis on extending the line from Listowel to Tralee, County Kerry, in view of the fact that it has extended the network from Foynes to Listowel; if so, will he request it to provide a copy of the report; if no analysis has been carried out, if he will direct Gas Networks do so; and if he will make a statement on the matter. [5286/17]

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
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The development and expansion of the natural gas network is in the first instance a commercial and operational matter for Gas Networks Ireland (GNI), a commercial State-sponsored Body under the aegis of the Minister for Housing, Planning, Community and Local Government, 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. Gas Networks Ireland's published Connections Policy, most recently revised in 2015, set out its policy on the connection of all loads to the transmission and distribution gas networks.

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. It also approves the GNI Connections Policy. I have no statutory function in relation to either the routing of pipelines or the connection of towns to the gas pipeline network.

I understand that Listowel, Killarney and Tralee were assessed under the "New Towns Analysis Phase 3" report dated 9 April 2010, published by Gaslink, the predecessor of GNI, including on its website. This assessment found that these towns did not qualify for connection on economic grounds at that time.

I am further informed that in the intervening period a review by GNI found that the three towns had acquired an increase in gas demand associated with new large industrial/commercial facilities in each. A sufficient anchor load has been identified in Listowel to make that town commercially viable for connection. Unfortunately there have not been sufficient new loads identified for Killarney or Tralee and they therefore remain economically unviable for connection under the Connections Policy approved by CER in 2015. I am informed also that the review carried out by GNI is regarded as commercially sensitive.

The question of whether network extensions should, where economically feasible and in line with our energy policy goals in the White Paper, provide for the possibility of future connections in order to contribute to regional and rural development needs to be addressed. At the launch of the Action Plan for Rural Development I set out my view that there are communities partly or sometimes wholly excluded from basic criteria of modern convenience and comfort, in terms of communications, energy efficiency and fuel poverty. My long-standing position on the gas network is that the network should be developed generally in rural Ireland to provide natural gas to as many areas as possible. I consider that that further extension of the gas network could have additional benefits. Accordingly, and against the backdrop of the energy policy White Paper, it is my intention to commission research and to have a report by year end on  into the potential role that natural gas could play in supporting rural centres.

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