HC Deb 13 May 1976 vol 911 cc252-4W
Mr. Campbell

asked the Secretary of State for Energy whether he intends to publish the consultants' report on the feasibility of gas gathering systems in the North Sea; and what are its implications.

Mr. Benn

Williams-Merz presented its report to me on 5th February. With the agreement of the operators, an edited version safeguarding the confidential information given by the licensees is to be published today. Copies have been made available to the Libraries of both Houses. I should like to thank the operators of the fields covered for their co-operation in the preparation of this report.

The report considers possible gathering systems to collect the gas in the northern basin of the North Sea. It estimates that the gas available from those fields, apart from that in the Brent and Frigg fields, as up to 1,500 million cubic feet a day suitable for the national supply system and a further 9 million tons a year of heavier gases. The report recommends two pipelines, in addition to those from the Brent and Frigg fields, which would provide enough flexibility also to cope with new finds.

The report was intended to give a rapid and comprehensive overview; it is necessarily based on very uncertain data, particularly on reserves and production schedules. The scope of the study had to be limited by simplifying assumptions that exclude from consideration some of the costs involved. These assumptions in no way indicate future Government policy.

Despite the qualifications and uncertainties which must attach to such a study, the report provides evidence of large amounts of gas for which no plans yet exist. More detailed studies will be needed before any decision could be taken to go ahead with a project on these lines.

Gas which would be landed by a gathering pipe-line system is of such a composition and quantity that when added to that already expected it indicates the need and opportunity for major petrochemical developments if it is to be put to its most valuable use. As it is Government policy to see that the best use is made of the potential for substantial petrochemicals investment in Britain afforded by North Sea feedstocks, together with my right hon. Friend the Secretary of State for Industry and other colleagues I look forward to considering all proposals that will lead to the expoitation of the gas.

I invite all interested parties to let me have their views before the end of July on such matters as:

  1. (i) organisation and methods of financing;
  2. (ii) any actions that the Government might take;
  3. (iii) the validity of the assumptions used;
  4. (iv) the nature of the further studies needed.

Meanwhile, I shall consider applications for consents to flaring gas against the framework provided by the Williams Merz Report.

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