KELLY BRINGS NATURAL GAS TO NENAGH
Issued : Tuesday 7 May, 2013
'The Most Significant Infrastructure Project in North Tipperary in Decades' - Minister Alan Kelly
Minister Alan Kelly announced last Thursday (May 2nd) that the Commission for Energy Regulation had passed the application by Nenagh to get connected to natural gas. Minister Kelly announced in mid December that an application had been made and that a decision would materialise in the Spring and now it has arrived.
Key Points:
- The Commission for Energy Regulation passed the application to bring a gas pipeline to Nenagh last Wednesday (May 1st).
- The Application had been submitted by Gaslink (Subsidiary of Bord Gais who are in charge of new town connections) in December 2012 in consultation with Nenagh Gas Committee.
- Gaslink and Bord Gais will sign contracts for the work to commence in the coming weeks.
- The project will cost approximately €8.5 million.
- This project commenced over 18 months ago following a meeting between Arrabawn Chief Executive Conor Ryan and Minister Alan Kelly.
- Minister Alan Kelly has been involved in approximately 50 meetings on this project to get it over the line. Meetings involved Minister Pat Rabbitte, Department of Energy officials and advisors, Bord Gais, Gaslink, North Tipperary Co Co and Nenagh Town Council. Minister Pat Rabbitte visited Nenagh and met with the Gas Committee about the project last year.
- Nenagh Gas Committee was set up over a year ago to plan for this project. The Committee is made up of Minister Alan Kelly TD, Conor Ryan (Arrabawn), Joe MacGrath (County Manager), Marcus O'Connor (Town Manager), Don O'Brien (ABP), Matt Muller (Abbey Court Hotel), John Conroy (Proctor & Gamble), Clodagh Cavanagh (Abbey Machinery) and Donncha Haverty (HKPB).
- It is expected that the project will take just over a year to complete and the ambition is to have gas in Nenagh by third quarter 2014.
- The pipeline will run along the old N7 from Birdhill.
- Every main road and artery in and out of the town will be provided for.
- It is estimated that Nenagh companies will save between €20-25 million in energy costs in the first five years of supply. Gas is a much cheaper source of energy to oil.
- Natural gas will make Nenagh a much more attractive proposition for inward investment. Companies measure energy costs as one of their key variables when looking at locating in a town.
- The provision of gas makes Nenagh's companies much more competitive, thereby lowering their costs of production and in turn protecting jobs and creating more jobs.
- It secures Arrabawn Co-op's future in Nenagh. Without natural gas they were on an uneven playing field with other co-ops who had this cheaper form of energy. They will save between €1.5-2 million a year when gas is turned on. With milk being deregulated in 2015 they will save even more and now be in a position to expand dramatically and stay in Nenagh.
- This creates significant cost savings for ABP, Proctor & Gamble, Abbey Court Hotel etc.
- It means all major public buildings will now have much lower energy costs.
- Natural gas is a clean source of energy and this connection means that carbon emission levels in Nenagh will drop considerably resulting in cleaner air.
Minister Kelly said 'Natural gasis a cheaper, cleaner source of fuel vis a vis oil and its connection to the town of Nenagh will be the most significant infrastructural project in North Tipperary in decades. Nenagh will save an estimated €20-25m over the next 5 years. Gas provision means massive financial savings for companies, businesses and public buildings across the town immediately once connected.
This makes Nenagh's companies more competitive, ensures companies and jobs are maintained as well as providing a strong base for companies to expand and provide much more jobs. In essence this announcement maintains and creates jobs and it positions Nenagh as one of the most attractive towns in the midlands for inward investment.
Bringing natural gas to Nenagh has been an objective of the town for many years. It has been the single most important project I have been working on since I became a Government Minister and I'm thrilled that all the hard work has paid off. Many people had tried to get this connection previously down through the years but it never got over the line. I was determined to make sure that I would.
When I got the call last Wednesday to say the project had been passed was one of the best days of my political career. I set up and attended approximately 50 meetings on this project. I was constantly working on it, lobbying, arguing for it or promoting Nenagh as the destination that needed the next gas connection. I'd say Minister Pat Rabbitte, who has Ministerial responsibility for Energy is glad this is across the line because I was forever on to him regarding its progress.
I would like to thank all the members of the Nenagh Gas Committee for working with me on this project. The Committee will stay in place to see the project through its implementation phase. In particular I have to pay a special thanks to Conor Ryan of Arrabawn and Joe MacGrath, Manager North Tipperary County Council. Conor worked tirelessly with me on this project. We were in constant contact. The provision of natural gas is crucial to the future of his company and its base in Nenagh. Joe played a huge role at critical junctures in the project and went out of his way to help get this across the line'.
Ends