§ Mr. Skeetasked the Secretary of State for Energy when it is expected a price will be agreed covering North 112W Sea gathering pipeline methane; whether the Stratfjord bid of the British Gas Corporation has had any relevance in the negotiations; and when private sector companies will be able to bid directly from producers for piped methane.
§ Mr. GrayPrices negotiated are likely to reflect timing, quality, supply pattern and other factors characteristic of each gas source. I would not expect a single price in common given such factors. The relevance of BGC bids elsewhere is a matter for the negotiators. The provisions of section 8 of the Energy Act 1976 already give scope for private sector companies to bid direct for supplies of piped methane.
§ Mr. Skeetasked the Secretary of State for Energy whether a price has been agreed covering ethane to be derived from the North Sea gathering pipeline; and how the price is being or has been established by commercial negotiations having virtually a monopoly seller.
§ Mr. GrayThe price or prices for ethane from the North Sea will be established by commercial negotiation. BNOC's participation options do not give it a virtual monopoly and there are many potential sellers and purchasers of the ethane.
§ Mr. Skeetasked the Secretary of State for Energy, in his plans for the North Sea gathering pipeline, in whom rests the property in the propane and butane; and what arrangements have been made for their disposal.
§ Mr. GrayThe propane and butane from the North Sea fields are the property of the licensees in the first place, subject to BNOC's participation options and any other commercial arrangements they may conclude. As I indicated in my answer on 17 December 1980 to the hon. Member for Sheffield, Hallam (Mr. Osborn) the pattern of disposal of these products should be determined by commercial negotiations.
§ Mr. Skeetasked the Secretary of State for Energy whether the consent of the British Gas Corporation is required to enable the British National Oil Corporation to deal in and market ethane; and what are the conditions set forth for doing so.
§ Mr. GrayNo; BNOC would require BGC's consent only if, very improbably, it proposed to supply ethane to premises in Great Britain for non-industrial purposes.
§ Mr. Skeetasked the Secretary of State for Energy who will own and operate the fractionation plant to be built at St. Fergus; and whether it is estimated that completion of the North Sea gathering pipeline will substantially increase oil production after 1985.
§ Mr. GrayFinal arrangements for the proposed St. Fergus gas facilities have not yet been decided. I cannot anticipate decisions on development and production proposals yet to be received in respect of oil production.
§ Mr. Rowlandsasked the Secretary of State for Energy what recent discussions he has held with the Norwegian authorities as to the possibility of their participation in the proposed gas-gathering scheme.
§ Mr. GrayThe last meeting between Ministers of both countries was in November, and there are continuing contacts between officials on both sides. The Norwegian authorities have been told that if Norwegian gas is dedicated to the gas gathering pipeline Norwegian interests would be welcome in the pipeline company.
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§ Mr. Rowlandsasked the Secretary of State for Energy how many licensees are involved in the proposed gas-gathering operation; and whether he will list the companies concerned.
§ Mr. GrayThe number of licensees involved in the supply of gas to the proposed gas gathering pipeline will depend on precisely which fields are finally connected to the pipeline. However, Energy Paper 44, copies of which are available in the Library of the House, lists on page 61 the fields mentioned in the BGC-Mobil gas gathering report, and the companies which operate these fields. Of the fields listed, Brent and Frigg already have settled gas disposal arrangements.