Gas Networks Ireland said it is investing €50m in an "essential" upgrade project which is needed to avoid the risk of potential capacity constraints on its Southern area network and to ensure sufficient supply in the case of extreme weather events.
Gas Networks Ireland said a capacity constraint is forecast for the southern part of the country, affecting Cork in particular, as trends and forecasts over the next decade point to an increase in peak daily gas demand on the transmission network.
With the new investment, Gas Networks Ireland said it is taking steps to reduce this security of supply risk in one of the key transmission pipelines that feeds this part of the country so that more gas can be moved through the pipe.
This in turn will prevent supply constraints in other parts of the national network and importantly, will ensure that the gas system can continue to meet customer demand on what is known as a 1-in-50 year winter day peak.
It said the investment will increase pipeline capacity in the Southern area by about 20% and will support economic growth by ensuring that Gas Networks Ireland can continue to connect new flexible gas fired power generation as well as new commercial customers in the region.
The construction works, which will be contained within existing Gas Networks Ireland site locations in Dublin and Limerick, started earlier this month, with the additional capacity due to come on stream next winter.
The upgrade project involves separating the gas transmission network between Dublin-Galway-Limerick and Dublin-Cork. The transmission pipeline that runs from Gormanstown in Co Meath to Goatlisland in Co Limerick will be upgraded to operate to its full design pressure of 85 bar, compared to the current 70 bar - a 20% improvement in capacity.
Gas Networks Ireland chief executive David Kelly said the project represents a critical investment in the network and comes at a time when energy supply and security is a significant issue for the Irish economy.
"Without this investment, we run the risk of future capacity constraints in the Southern area of our network, making this a priority national project," Mr Kelly said.
"We also recognise that energy security and resilience is a key consideration for businesses operating in Ireland, with capital investment in energy infrastructure supporting ongoing economic growth," he added.
Gas Networks Ireland Director of Assets & Infrastructure Brian Sheehan said that part of the company's remit is to review and monitor demand on the national gas network and to make forecasts about future requirements.
"This project is being expedited to prevent a situation where energy could potentially be curtailed in the South of the country should we experience an extreme weather event," he said.
"While counties along the pipeline route will directly benefit, this reinforcement project will also prevent capacity issues and constraints in other parts of the network, thereby benefitting the whole country in the longer term," he added.
Minister of State in the Department of Rural and Community Development and the Gaeltacht and the Department of Transport Jerry Buttimer said today's announced investment will have a significant positive impact on counties in the South of the country, and particularly Cork.
"Gas is the backbone to Ireland's integrated energy system and is relied upon by many businesses for their operations. I am delighted to see the advancement of an infrastructure project that provides security of supply as well as additional capacity required to support regional development," he added.
The project has received all necessary approvals and will be delivered in conjunction with Gas Networks Ireland's construction partner Murphy.
