[ 03-05-2005 ] Recent Developments in the Natural Gas Industry in Northern Ireland
On 21 September 2001 the Northern Ireland Executive announced its support for the development of a multi million pound gas project. The support is in the form of a grant package up to £38m, including an Irish Government contribution of £8.5m. The project involved the construction by Bord Gáis Éireann Northern Ireland (BGENI), a subsidiary of Bord Gáis, the Republic of Ireland state owned gas company, of a gas pipeline from north of Dublin to Antrim (known as the South North pipeline) which will link with a pipeline from near Carrickfergus to Londonderry (the North West pipeline). The North West pipeline was completed in October 2004. Construction began on the South North pipeline in February 2006 and it was completed in October 2006.
Development of the natural gas industry required the "postalisation" of gas conveyance charges so that the charge for delivering gas is the same to all locations on the transmission pipeline network. Postalisation of gas charges impacts on electricity prices and the effect is determined by various factors. The gas transmission pipelines facilitate the supply of gas to towns along their routes.
On 13 June 2003 the Northern Ireland Authority for Utility Regulation (NIAUR - formerly known as the 'Northern Ireland Authority for Energy Regulation') announced that it had invited BGE(NI) to enter into preferred bidder status for the distribution licences. BGE (NI), through its supply company firmus energy has begun the roll out of gas to domestic and non-domestic customers in ten towns along the pipeline routes. The towns are Antrim, Armagh, Ballymoney, Ballymena, Banbridge, Coleraine, Craigavon, Londonderry, Limavady and Newry. The first non-domestic customer was connected in Ballymena in December 2005. The first domestic customer was connected to gas in the Strathfoyle area in Londonderry in April 2006. Firmus Energy is continuing with the installation gas distribution networks and connecting customers in the respective towns.
In the licence area of Greater Belfast and Larne, Phoenix Natural Gas has over 100,000 customer connections. The gas supply market in the Phoenix licence area is open for competition for both domestic and non-domestic gas consumers from 1 January 2007.
