The gas discovery off the Achill coast could have a positive impact on the entire north-west region if the Government takes the correct approach, according to the Western Development Commission.
The extent of the discovery in the Corrib Gas Field will not be clear for several weeks, but it is estimated at one trillion cubic feet - similar in scale to the Kinsale find.
Rather than the gas being piped directly to Dublin, the Western Development Commission (WDC) is calling for several spurs off the main pipeline for towns such as Sligo, Ballina and Claremorris.
It is also wants the possibility of a gas interconnector with Northern Ireland to be investigated. "This could be very timely, in light of the new cross-Border arrangements," said Mr Liam Scollan, WDC chief executive. "And the whole north-western region would benefit if the gas was piped on to Northern Ireland."
Mr Scollan said this had been discussed with Enterprise Oil, the exploration company, and it is open to all these possibilities.
A company representative said it welcomed the discussion but the route was ultimately a matter for the Government.
The Department of Public Enterprise has told the WDC that it cannot determine the route of the pipeline as this is a commercial operation, and any State interference would be contrary to EU regulations.
Mr Scollan points out that the EU has designated the western region as Objective 1, thus recognising the market failure in the region and the need for favourable measures.
He also points to the National Development Plan commitment to regional development and says this is an ideal opportunity to influence development positively in the north-west and west.
"From 1991 to 1996, growth in net industrial output was 4 per cent in the western region, compared with 13 per cent nationally. The correct exploitation of this natural gas find could be a defining moment for this entire region in terms of rapid economic development and sustainable employment growth," he told The Irish Times.
The commission also believes the Government's handling of this gas find will have implications for all future discoveries. "The gas exploration field stretches as far as Donegal, so there is plenty of potential there."
The availability of gas could have two main advantages for businesses in the region, according to Mr Scollan. "It would provide a competitive, clean and efficient fuel supply and it could also allow the creation of a power station, which would increase the level of electricity supply in the region.
"This would attract more heavy industry such as Masonite in Leitrim, as well as high-tech industry which demands a high quality of supply."
He would like to see a large power station in the north-west which would boost local industry such as timber processing, mushroom growing and vegetable production.
"They all depend on clean efficient energy. Donegal, for example, is singularly lacking a 220 kv power supply."
The Western Development Commission is calling on the Department of Public Enterprise to carry out a regional economic impact assessment on the gas field. The commission is meeting the forum of western Ministers in July, and will be seeking their support for this plan.
"The Kinsale gas operation spawned a lot of industrial development in the immediate area. We want to do that on a much greater scale," Mr Scollan said.
"People are describing the gas exploration field in the Atlantic as the new frontier. We want to make sure that it benefits this region in the greatest possible way instead of being piped away to Dublin."
