Assembly gives go-ahead for £60m gas pipeline

The Northern Ireland Executive has given the go-ahead for a £60 million natural gas pipeline through the province.

The pipeline is an integral part of plans required to get a £150 million gas powered electricity generation station near Coolkeeragh up and running.

Coolkeeragh ESB Chairman Tadhg O’Donoghue welcomed the decision: “This is a big step forward for energy infrastructure development in North and South. With out partners Coolkeeragh Power, ESB is making a long-term commitment to the Northern Ireland electricity market and we expect to start construction on the 400MW power plant next year. When the plant is operational it will deliver competitive electricity and a quality service to customers.”

Local industry has lobbied strongly for both the pipeline and the gas powered generation plans. while business pressure groups are hopeful that the scheme will lead to cheaper energy costs for both businesses and consumers.

Alasdair McDonnell, the SDLP spokesperson on energy, said: “This is the single most important energy related announcement in many years. Under the plan a powerful new gas fired power station will be built at Coolkeeragh outside Derry by a consortium including ESB International and British Gas.”

With local businesses experiencing increasing difficulties in absorbing the impact of high energy costs in the province, many leading companies such as Dupont, Michelin, Gallaghers, Tesco, Moypark, NACCO, Irwins Bakery, Denny’s, Tayto, Ulster Carpet Mills, and Jordan Plastics, have backed calls for lower energy costs.

Ian Young, Chairman of the east-west lobby Group 22, said: “The implications of this major infrastructural investment in Northern Ireland cannot be underestimated. Not only does it represent one of the most significant inward investment projects ever, the energy choice it provides will address the very real problem of fuel poverty in our community and will deliver a competitive level playing field for local industry outside of Belfast.”

He said that the decision was a vindication of the success of local politics driven by local politicians with the long-term needs of the community at heart.

In the past, concern has been raised about the plight of large firms in the province, such as Michelin in Ballymena, where all goods produced are sold on in price-sensitive global markets.

Unions have also warmly welcomed the Executive’s decision, which they said would lead to more jobs and economic success for the province. (SP)