HC Deb 23 March 1981 vol 1 cc622-3
12. Mr. Skeet

asked the Secretary of State for Energy when he expects to meet the chairman of the British Gas Corporation to talk about the disposal of the hydrocarbons which will be landed from the gas-gathering pipeline.

Mr. Gray

My right hon. Friend and I meet the chairman of BGC from time to time and discussion covers a range of issues, including on occasion the disposal of hydrocarbons which will be landed from the gas-gathering pipeline.

Mr. Skeet

With regard to the disposal of the gas to industry, does my hon. Friend not recognise that there will have to be a new formula in order to assess the price of gas? Its price should not be linked with fuel oil, because the Chancellor has told us that the fuel oil tax will not be reduced.

Mr. Gray

I take my hon. Friend's point, but these are matters for negotiation between the BGC and the producers and users.

Mr. Douglas

Does the Minister accept that, while some matters may be the subject of negotiation between the producers and the users, we must consider the overall national advantage? Will he give an assurance that, at least in the medium term, the disposal of ethane will be down the line to Moss Morran, Braefoot Bay and the central industrial belt of Scotland, and not round the corner to Cromarty Firth?

Mr. Gray

My right hon. Friend made perfectly clear the pattern of disposal that the Government would wish to see. These considerations must always be governed by the financial implications and the price that people are prepared to pay.