Bord Gais will construct a £200 million (€254 million) pipeline from Ballough in north Co Dublin to Galway and Ennis, the State gas board announced yesterday. The line will connect with its existing grid at Co Limerick and open up the midlands and the west to piped gas supplies.
The project was announced at the opening of the 21st anniversary exhibition of Bord Gais. It will spend £500 million in infrastructural investment over the next five years, which includes construction of the second gas inter-connector to Scotland to draw on the North Sea gas reserves.
Mr Philip Cronin, Bord Gais chief executive, said the "ring main" project would mean security of supplies for much of the State, ensuring continuity if part of the grid breaks down. Completion of the second gas inter-connector would ensure supplies of gas beyond 2004 when the Kinsale field reserves become depleted.
Funding for the projects would come from reserves and borrowings and possible EU grant aid, he said.
The provision of a pipeline to the west could also be used to transport gas from the Corrib field if Enterprise Oil found the discovery was commercially viable.
Mr Cronin said the planning of the extension to Galway was coincidental. "That would be Enterprise's call to decide if they want to get into this pipeline. It would certainly mean that the Bord Gais infrastructure would be closer to the assumed landfall than it is at the moment." Among the towns which will be directly served by the new pipeline, due to be completed by 2002, are Trim, Mullingar, Athlone, Ballinasloe, Athenry, Loughrea, Galway, Gort and Ennis. Mr Cronin said "spurs", or added pipelines, would be added where commercially viable. The most immediate spur to be built is likely to run to Shannon, 12 miles from Ennis.
Meanwhile, Mr Joe Jacob, the Minister of State for Public Enterprise, said he was awaiting proposals from Bord Gais on its future structure. It is likely the main outcome will be the company changing from a statutory body to being a public company but an initial public offering is not being ruled out for at least part of the company. Last year it made profits before tax and exceptional items of £80 million. The changed structure would allow the board to continue with its plan for a joint venture with Telenor, the Norwegian telecoms firm.
Bord Gais chairman Dr Michael Conlon said fibre optic cable would be installed in the pipe network as part of the company's strategic plan to build shareholder value and gain new customers in a competitive environment.
