Gas field work 'not strategically important'

Campaigners opposed to energy giant Shell’s gas project in Mayo today said Tánaiste Michael McDowell’s claim that it is strategically important is wrong.

At the opening of the Progressive Democrats’ party conference in Wexford yesterday, Mr McDowell said immediate development of the Corrib gas field was vital to secure energy supplies.

He also criticised politicians who support the campaign against the scheme.

But Shell-to-Sea spokesman Dr Mark Garavan said the Tánaiste was wrong on several grounds.

“The reality is that instead of securing an indigenous gas supply that could be strategically utilised and be a source of national wealth, the Corrib gas has been privatised and is in effect another source of imported gas to be bought at full market rate,” Dr Garavan said.

“Assertions and bluster to the contrary won’t obscure the woeful government mismanagement of this resource.”

Dr Garavan said opposition to the Corrib gas project is not about stopping the development of gas, but about stopping the specific processing proposal put forward by Shell.

He also claimed that no strategic importance of the project has ever been demonstrated.

Dr Garavan asked: “Is it security of supply? No, because Bord Gais makes it quite clear that most Irish gas comes from the North Sea and that there is no medium-term threat to the continuity of those supplies.

“Is it lower cost? No, the price of gas is determined by global market forces and Corrib will be purchased at full market price.

“Are there significant financial benefits to the State? Again no. No royalties are being extracted, no equity share taken, no windfall tax levied. All exploration and development costs can be written off against tax at 100% from year one. Thus very little financial benefit will arise.”

Dr Garavan also said most jobs will be in construction as the refinery site is built. Only 50 people will be employed there when the project is up and running.

Yesterday, during a day of protest at the refinery site in Bellanaboy, north Mayo around 100 protesters broke into the complex.

About 400 people had been taking part in a peaceful Shell-to-Sea march marshalled by 120 gardaí when a section of the crowd broke off and forced their way into the construction site.