HC Deb 08 December 1964 vol 703 cc1313-5
10. Mr. J. H. Osborn

asked the Minister of Power if he will give the volume and value of natural gas imported this year; how much has been fed in to the natural gas pipeline grid between Canvey Island and the North; and what information he has about the future supply of natural gas to gas undertakings connected to the grid.

Mr. Frederick Lee

Twenty million therms of Algerian gas have been imported at an estimated landed cost of 6¼d. per therm, and rather more than three-quarters of this has been supplied to area gas boards. The planned rate of the scheme is about 350 million therms per year which should be reached during the course of the winter. There are no firm proposals for imports of natural gas beyond this.

Mr. Osborn

While thanking the Minister for that reply, may I ask him to state whether the programme for feeding natural gas to all the gas works through the grid has gone according to schedule, and whether he is satisfied with that programme?

Mr. Lee

Yes, Sir.

Mr. Geoffrey Lloyd

Is the right hon. Gentleman aware that the enterprise of the gas industry, in co-operation with private firms, in making arrangements for these new supplies of gas is much admired? Will he bear in mind also the great urgency of proceeding as quickly as possible with arrangements for the underground storage of the gas, because this is essential to enable the industry to get the best benefit out of it in the interests of the consumer?

Mr. Lee

I agree with the right hon. Gentleman about the great enterprise shown by this nationalised body. The second point is rather a different matter, which one has very much in mind.

Mr. Bellenger

Now that my right hon. Friend is able to import this gas at a very cheap price, may I ask when consumers will reap the benefit in prices, too?

Mr. Lee

The Algerian gas will help the boards to offset increased costs and to stabilise prices, but it is still a very small proportion of the boards' total supplies and it cannot at this stage lead to general price reductions.

Mr. Peyton

May I press the Minister on the point raised by my right hon. Friend the Member for Sutton Coldfield (Mr. Geoffrey Lloyd)? Is the Minister aware that if the gas industry is to make full use of these important developments like methane it is necessary to provide underground storage? Can he press his right hon. Friend the Leader of the House to allow time for a Gas Bill for this purpose?

Mr. Lee

I am seized of the importance of this point, and it really is a question of when we can get legislation into the programme. I agree with the hon. Gentleman about the importance of this project.

Back to