The development of a North-South energy market looks increasingly likely following yesterday's meeting in Belfast between Sir Reg Empey, Minister for Enterprise, Trade and Investment, and the Minister for Public Enterprise, Ms O'Rourke.

Sir Reg said: "I hope that a North-South gas interconnector can be put in place as it would facilitate the provision of gas to towns along the route of the pipeline and also improve the security of gas supply to existing customers."

Premier Transmission, a consortium owned by British Gas and US energy group Keyspan, wants to build a cross-border interconnector linking the networks in the Republic and the North at a cost of £120 million (€152 million).

Sir Reg said he and Ms O'Rourke had agreed to jointly commission consultants to prepare information papers on the energy situation in both jurisdictions. "This joint collaborative effort is intended to provide the basis for consultation on the possibilities for the development of an all-island energy market," he said. Sir Empey said the project would focus on the scope for initiatives to encourage convergence in the interest of business and consumers and avoid the creation of new obstacles to further cross-border business development.

Ms O'Rourke also welcomed the joint initiative. "We are laying the foundation stone to a process that we hope will provide significant economic opportunities in the years ahead for cross-border business development and yield significant benefits to consumers north and south," she added.

She said the upgrading of the main North-South electricity interconnector was a "concrete example" of the joint approach being pursued by both administrations to cross-border energy development.