§ Mr. Whitakerasked the Minister of Power whether he will ensure that the price of North Sea gas does not exceed 1½d per therm; and what estimate he has made of the respective profit for the selling companies at that price, and at 2d. a therm.
§ Mr. MarshThe negotiations on the price of North Sea gas are between the Gas Council and the licensees and are confidential. Both parties are aware of my close interest in the outcome, which is to obtain for the benefit of the economy and the balance of payments, the maximum quantity of gas at the lowest price consistent with encouraging further vigorous exploration. If negotiations break down and I am called on to exercise my functions under Section 9 of the Continental Shelf Act, 1964, I should have to hear the views of both parties before reaching my decision. The profit to the selling companies will depend not only on the price but on the costs of exploration and production which are likely to vary considerably.