Bord Gais' existing or future domestic and industrial commercial customers will not be affected by any capacity problems, the company said yesterday. The assurance came after the Department of Public Enterprise advertised for consultants to advise on who should be guaranteed their gas requirements when demand outstrips the supply through the current network of pipes.
According to the Department, demand for natural gas is rising so fast that Bord Gais' network may not "in the short-term" be able to supply all major customers.
"(This) has arisen due to the increasing demand for natural gas as a result of high economic growth, and increasing requirements for natural gas and for the generation of electricity," the advert reads.
The advert says the Department is seeking consultancy advice on the implementation of a scheme to select gas users to whom guaranteed capacity would be awarded. This could be done by auction, lottery or on the basis of the best application, the advertisement suggests.
A Bord Gais spokeswoman said yesterday it was possible, but unlikely, that the company would be unable to meet all demand for gas. But she stressed that any restrictions on capacity would apply only to huge customers, typically those using gas to generate electricity, rather than domestic or commercial users. In any event, she added, the possibility of a new interconnector between Ireland and Scotland, as well as the recent gas find off the west coast, would mean any possible demand would be met by 2004.
Industry analysts said Bord Gais would probably have little trouble meeting all demand from two gas power stations the ESB is thought to be planning, and could probably supply as much gas as required to some other companies planning to enter newly de-regulated market next year. But if all of those firms said to be interested in building power plants in the Republic were to press ahead with their plans, Bord Gais could be caught short for a year or two.
In a study published earlier this month, Bord Gais chairman, Dr Michael Conlon, warned that the supply network would require investment of up to £1 billion (€1.26 billion) by the year 2025, with as much as £800 million needed within the next ten years.
Gas supplies from the Kinsale Gas Head would run out over the next few years, he said, and the existing interconnector from Scotland would be fully utilised. Dr Conlon said it could cost £648 million to build the interconnect to Scotland and install the necessary infrastructure to extend gas supplies to other areas in the Republic.
