Business leaders have urged the Government to ratify a proposal to bring natural gas from Northern Ireland to Co Donegal.
At a Cabinet meeting on Tuesday there was general agreement to back the proposal, although no formal decision was taken, and the project is dependent upon the Northern Executive deciding to fund the construction of a gas pipeline from Belfast to Derry.
The Executive is due to meet this afternoon and the issue is expected to be on the agenda, although this may be postponed because of political uncertainty. Chambers of commerce on both sides of the Border have come together to lobby for natural gas to be brought to the north-west.
The region would benefit and a cross-Border element would mean EU funding could be accessed. The regional manager of IBEC in the north-west, Mr Padraig O'Grady, said it was clear a Government subvention would be needed for the pipeline to Letterkenny which could cost £11 million.
If the decision was ratified, it would mean "a major infrastructure boost for Donegal" which would help address existing imbalances with other regions.
He pointed out that industry in the region was totally dependent on the ESB for energy.
Mr O'Grady said: "On telecommunications and energy we in the north-west are the poor cousins, so I would stress there is a huge need for the Government to deliver on this or the gap will be widened even further."
Part of the plan to bring natural gas to the north-west involves the construction of a £300 million gas-fired power station at Coolkeeragh, outside Derry, by a consortium including ESB International and British Gas.