Encouraging gas exploration
O’Malley asked about export markets and an interconnector as ways to stimulate gas exploration. Burke said the Government was expanding the domestic market and examining other options to address uncertainty about gas off-take.
My question has to do more specifically with gas exploration and what the Minister might have in mind to encourage it. The market for gas is filled at the moment in the sense that at the present rate of off-take from the Kinsale Head gas field it would appear that the market is catered for for about the next ten years. What are the Minister's views on opening up an export market for natural gas? That would be a stimulus towards giving the oil companies an opportunity to go out and determine whether gas reserves exist. Further, would the Minister favour the construction of an inter-connector into the UK gas grid? Has he carried out any cost benefit studies in that regard? Would he address that matter generally?
Comment on this
Regarding the suggestion that the full potential of the Irish market is the amount to which we are tied under the present contract level in Kinsale, there is potential for quite a considerable amount more there. The amount, however, is arguable. As part of our development of markets, we are extending the pipeline to Drogheda and Dundalk and taking in the horticultural area of the north county, to try to create a bigger market for gas. I recognise that one of the drawbacks in exploration for gas is the question of off-take. With that in mind I have been examining other possibilities, other industries that could take extra gas, the ESB for example. I established a group in my Department with an outside chairman to review the question of the future of this whole energy question of gas. On the question of an inter-connector, I have discussed this matter with my opposite number in Britain, the Secretary of State, Cecil Parkinson. There has been correspondence on this which is ongoing and I am hoping for a solution shortly.