The Government and the Northern Ireland Executive today announced a joint venture to provide gas throughout Ireland and link up with the European energy network.
Northern Ireland Enterprise Trade and Investment Minister Sir Reg Empey and Finance Minister Mr Mark Durkan joined Minister for Public Enterprise Mrs O'Rourke to formally begin the project.
Mrs O'Rourke described the development as "a potent symbol of co-operation". She said the Government's decision to make an £8 million grant available for the project was recognition the development of the gas network in Northern Ireland would bring improved energy supplies in Co Donegal.
"The development of cross-border gas supply infrastructure is also essential to the development of an all-Ireland energy market," she said.
The pipeline is due for completion by late 2004, with supplies beginning to flow at a later date.
Sir Reg said the project had the potential to make natural gas available to more than 75 per cent of the population and open the way for the building of a new electricity power station at the same time.
He also said the proposed pipeline from the south to the north of Ireland would permit the development of gas distribution networks to towns on its route and boost the prospects for inward investment in areas of high unemployment.
Mr Durkan said: "The project represents a strategic investment in the future of this region and will provide the necessary energy infrastructure we need for the 21st century".
PA