Brendan Smith (Cavan-Monaghan, Fianna Fail)
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1303. To ask the Minister for Communications, Climate Action and Environment if he has been in contact with his counterparts in Northern Ireland with regard to the development of a project (details supplied), and if he will make a statement on the matter. [35929/17]

Denis Naughten (Roscommon-Galway, Independent)
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The development and expansion of the natural gas network is in the first instance a commercial matter for Gas Networks Ireland (GNI), 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. 

In 2006, the CER approved a new network connections policy, which created the opportunity to reassess the feasibility of connecting certain towns to the gas network The CER policy stipulates that 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 by CER to obviate against uneconomic projects which would increase costs for all gas consumers. 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.

As regards the connection of Ballyconnell or Cavan town to the gas network, I am aware that the most recent assessment of this region under CER’s economic criteria was undertaken by GNI between 2006 to 2010 and it was found that connecting Ballyconnell or Cavan town to the gas network remains unviable at this time in the absence of a significant new demand for gas. Towns that were not proven viable, under the criteria set out by the Commission for Energy Regulation, are kept under review by GNI.

I note that the Gas to the West project in Northern Ireland has only recently entered the construction stage, with work on the intermediate pipelines begun this month, with the high pressure pipeline being constructed in 2018.

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, in my view. 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 it should be developed generally in rural Ireland to provide natural gas to as many areas as possible. Accordingly, and against the backdrop of the energy policy White Paper, I am commissioning a study on the wider costs and benefits of gas network extensions, to include possible climate and decarbonisation aspects, as well as the regional and rural development benefits such as in supporting rural centres. It is intended that a preliminary report will be delivered before the end of 2017.