HC Deb 10 March 1980 vol 980 cc901-3
2. Mr. Douglas

asked the Secretary of State for Energy if he will make a further statement on the gas gathering system study for the United Kingdom continental shelf.

17. Mr. Kenneth Carlisle

asked the Secretary of State for Energy when he expects to have enough evidence to make a judgment about the feasibility of a gas gathering pipeline.

27. Mr. Skeet

asked the Secretary of State for Energy if he will make a statement on progress in planning the North Sea gas gathering pipeline.

The Minister of State, Department of Energy (Mr. Hamish Gray)

The British Gas Corporation and Mobil North Sea Ltd. are making good progress in their study of a new gas gathering line and expect to submit their report by early April. I am told that the results look very encouraging. The Government's judgment about the feasibility of the line will be made in the light of that report.

Mr. Douglas

In view of that answer, why has the Minister been making optimistic statements about the report all round the country—everywhere except the House of Commons? When shall we have the opportunity to debate the issue? Exactly how do the Government intend to underwrite their responsibilities for this crucial development?

Mr. Gray

I agree with the hon. Gentleman that this development will be crucial. He will be aware that my officials are in constant touch with the progress of the study in order to advise me on the national interest, as results become available. Speculation has its own fascination, but the Government's judgment will be formed in the light of the study's report. Due opportunity will be given to the House to discuss these matters after the Government have received the report, which is expected to be at about the end of this month.

Several Hon. Members

rose—

Mr. Speaker

I propose to call first those hon. Members whose questions are being answered.

Mr. Carlisle

Does my hon. Friend agree that we must avoid the flaring-off of excess gas during oil production in the North Sea, and that the extension of gas pipelines would not only help us achieve that but enable us to increase oil production?

Mr. Gray

I entirely agree with my hon. Friend. We have already taken steps to try to reduce the amount of flaring at present taking place. The pipeline would make a considerable contribution to that. There has been identified about 12 trillion cubic feet which might be collected.

Mr. Skeet

As there is so much gas available in the North Sea, which could be gathered by a pipeline, will my hon. Friend make sure that it is made available to the chemical industry, which has been starved of it in the past? Will he also ensure that there is a Norwegian link? There might be a very good opportunity to link the Norwegian system with our own.

Mr. Gray

The answer to my hon. Friend's first question is that it will be a matter for commercial negotiation. We have already offered the Norwegians participation, but, regrettably, it was refused. We should still like to co-operate with the Norwegians, but it must be appreciated that we cannot hold up our plans in order to accommodate them.

Mr. Eggar

Will my hon. Friend confirm that the Government intend, once the study is completed, to permit companies other than the British Gas Corporation to purchase the methane from the gas-gathering system?

Mr. Gray

When the report is received, the Government will give it every consideration, but I can make no further comment at this stage.