Government gives gas contract to private company

The Government is to introduce competition in the gas supply market before the end of this year.

The Fianna Fail-Progressive Democrats coalition has decided to give the contract to supply gas from the Seven Heads field to a British company instead of the semi-state Bord Gais, which had previously controlled all of the Irish supply.

The Seven Heads field, which was discovered in 1973, is located 50kms off the coast of Kinsale in Co Cork and has the potential to supply 10% of Ireland's needs.

The Government has granted the lease to produce gas from the field to a Scottish company.