Decision on gas link `imminent'

The Government yesterday postponed a decision on Bord Gais's proposal to build a second gas interconnector with Scotland.

The Cabinet discussed the matter, but sought further clarification. It previously sought information after a meeting last month.

In the Dail yesterday, the Minister of State for Public Enterprise, Mr Joe Jacob, said a decision was imminent. That is expected at the end of the week.

While the Department has said the pipeline should be sanctioned to counter a gas shortage in winter 2002, certain Cabinet members are believed to be concerned about expenditure of £300 million (€381 million).

A new interconnector would give Bord Gais advantage over its competitors in a liberalising market, yet projections in a recent report from the Economic and Social Research Institute suggest a shortage next year.

There are alternative sources but Corrib field gas will not be available until the second half of 2003. In addition, a consortium planning a Belfast-Dublin pipeline has so far failed to secure customers for its bespoke link. Premier Transmission is unhappy with plans to charge a levy to guarantee uniform gas tariffs throughout the State.