§ Mr. Swainasked the Minister of Power what progress has been made in his negotiations with the oil companies to fix a price for North Sea gas; and if he will make a statement.
§ Mr. MarshNegotiations are continuing between the Gas Council and the companies. I will make a statement as soon as possible.
§ Mr. Swainasked the Minister of Power what is the price being paid by the gas industry for North Sea gas; what price 181W the consumer is paying; and whether his Department is subsidising the price.
§ Mr. MarshThe only North Sea gas at present being delivered on shore is from B.P's field off the Humber. The price being paid by the Gas Council is 5d. per therm but this is only valid up to an average of 100 million cubic feet a day and for an initial period of three years. This gas is being used mainly to manufacture town gas, which is sold to consumers under the Gas Boards' normal tariffs. Some natural gas is being supplied to consumers direct, at prices slightly below the normal town gas tariffs. My department is not subsidising the price.