Bord Gáis has had to adapt to an increasingly competitive environment and at the same time finance a significant capital investment programme to develop its pipeline business. This has meant significant borrowings over the past few years to finance capital expenditure of €1.5 billion required for major projects in the period 2001-2007. The programme includes: -
- A second sub sea interconnector pipeline from Scotland (IC2);
- The Pipeline to the West, linking Dublin, Galway and Limerick;
- The Mayo-Galway pipeline, connecting the landfall site for the Corrib gas field to the Irish transmission network at Galway;
- Northern Ireland pipelines between Gormanston and Belfast, and Belfast and Derry
- Pipeline from the second sub sea interconnector from Scotland to the Isle of Man
These developments more than doubled the Bord Gáis natural gas network by 2007 and bring natural gas within economic reach of additional homes and businesses.
Current Status of Major Projects:
IC2
Interconnector 2 (IC2) ensures security of supply to 2025 and beyond. It brings Ireland's security of supply status on par with countries such as France, Italy, Sweden and Denmark, all of whom have duplicated sub-sea pipelines to ensure the availability of alternative sources of natural gas supply.
IC 2 also:
- Facilitates a competitive market place in both gas and electricity. With the entire natural gas market now open to full competition, eligible gas users are free to purchase gas independently and to transport that gas through the Interconnectors.
- Presents a comprehensive additional supply source in the event of disruption to the first interconnector or to any other sources of supply.
- Allows for extensive natural gas based power generation stations as the additional capacity provided by IC2 will promote fuel switching in the power generation sector in favour of environmentally friendly natural gas.
Interconnector 2 comprises :
- A 200 km, 30 inch sub-sea pipeline from Ross Bay in South West Scotland to Gormanston in County Meath
- A 30 km, 36 inch diameter onshore pipeline from Moffat in Scotland that ties into the existing network
- A reception terminal at Gormanston to reduce the pressure of the incoming gas and provide for gas metering.
- A 14 km pipeline from Gormanston to Ballough in County Dublin.
Construction on this major infrastructural project is complete and the pipeline is operational.
Pipeline to the West
Pipeline to the West, which traverses the country linking Dublin-Galway-Limerick, has opened up the midlands and West to the natural gas network for the first time. The pipeline connects into the existing natural gas network at Dublin and at Limerick, thereby creating a national transmission ring connecting Dublin, Galway, Limerick, Cork and back to Dublin.
The project will also strengthen the security of the national transmission system, in effect, by creating two routes to transport gas from Dublin to Cork. This will become a major issue when the Kinsale/Ballycotton fields are depleted and the Cork and Limerick areas are reliant on supply from Dublin. Pipeline to the West will also bring significant economical and environmental benefits to the areas along the route.
The construction of this 318km high-pressure transmission Pipeline to the West connecting Dublin with Galway and Limerick is complete. The connection of major population centres to this network was subject to approval from the Commission for Energy Regulation (CER) under the Gas (Interim) (Regulation) Act 2002. In May 2003 the CER gave approval to Bord Gáis to develop natural gas networks in Galway, Oranmore, Ballinasloe, Tullamore, Clara, Mullingar and Athlone along the route of the Pipeline to the West.
Mayo-Galway Pipeline
Bord Gáis commenced construction of the Mayo-Galway pipeline in May 2005 and completed construction in October 2006. The 150km pipeline is designed to transport natural gas in the north-west of the country. The construction of the pipeline was enabled by the developers of the Corrib gas field, who have contracted with Bord Gáis to construct the pipeline. The cost of the pipeline is underwritten by the Corrib Partners.. Bord Gáis will own this pipeline. The construction of this pipeline will facilitate supply of gas to towns in the West under the Gaswest Project.
Gaswest Project
Gaswest Project, a €40 million, three-year development project for the West of Ireland, making natural gas available to eleven towns along the Mayo-Galway Transmission Pipeline. Castlebar, Westport, Ballina, Ballyhaunis, Claremorris, Crossmolina and Knock in Co. Mayo and Craughwell, Headford, Athenry and Tuam in Co Galway are all expected to have gas delivered by 2009.