Dismay as €50m. Mayo gas project placed in jeopardy
A LACK of government support is hampering a multi-million-euro gas field project off north Mayo.
The Inishkea and Inishkea West field would extend the life of the Bellanaboy gas terminal by at least 15 years, preserving up to 180 jobs.
There are hopes that a well will be drilled in 2025, at a cost of €50 million, with gas to be flowing by 2028.
The site in question is beside the Corrib field. The Inishkea name does not reflect its actual position - it's 200km out to sea.
A presentation by Brian Ó Catháin on behalf of Europa Oil and Gas received a positive response from members of Mayo County Council's Economic Development, Enterprise Support, Planning and Marine Strategic Policy Committee.
However, he described the government as being 'lukewarm' about the project, making it difficult to attract investors.
Fianna Fáil and Fine Gael support it but don't say that in public, while the ban on exploration has made it difficult to raise capital as companies have moved their interest away from Ireland, he said.
Commercially and technically it is an 'obvious prospect', but the lack of support on the political side is causing it to be a difficult sell.
Europa have an exploration licence but they need to attract investors for the well drill, he explained.
The licence expires in 2024 and a decision has to be made by November on whether to drill or not.
If it works out, the life of Corrib will be extended by decades, supplying low Co2 gas and ensuring security of supply for the country.
The field is located 11 kilometres from Corrib and would be piped into the existing infrastructure, with no new terminal required.
Bellanaboy is due to close between 2030 and '35 and this would take it up to 2050, he explained.
Mr. Ó Catháin said as this was a lower cost development than Corrib, it would make bigger profits and yield a higher tax return.
He also pointed out how the G7 Summit supported gas as a transition energy away from oil and coal to fill the gap until more renewable energy streams come online.
Public consultation was also touched on by Mr. Ó Catháin if funding is realised and a plan is being formulated.
Councillor Jarlath Munnelly was supported in his call that the committee would write to Taoiseach Leo Varadkar and Minister Eamon Ryan seeking government support to enable the project progress.
The country faces energy challenges, he said, and this would bridge the gap.
Councillor Neil Cruise said it was ridiculous that we have a minister saying we need seven new gas-fired power plants but when this is mentioned in the open everyone is running from it.
There was no point building seven plants if they had no gas to pump into them.
Delivering the gas would be good for the county and the country, pointed out Councillor Martin McLoughlin. The existing gas project’s life is halfway through now and 2035 is only around the corner.
Cathaoirleach Councillor Mark Duffy said if this was successful it would lead to 60% of Ireland’s supply coming from the Mayo field. He would prefer to see our own gas being used instead of relying on international supplies.
The committee should seek the support of the full council and write to the Taoiseach and minister, he said.