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9 Jan 2003 : Column 387—continued
Mr. Weir: I am interested in what the Minister says. Does he believe that the new arrangements will bring the cost of landing at St. Fergus nearer to that at other terminals? The worry is that landing at St. Fergus is much more costly than, say, at Bacton.
Mr. Wilson: The arrangements will certainly help to achieve that end. Whether they are part of the solution or the solution itself remains to be seen. They do represent a significant advance and innovation, however, and we need to see how they work out. I am aware of the importance of the issues to the future of not only St. Fergus, but the oil that flows from it. Discussions between my Department and its Norwegian counterpart are under way about the possibilities for a new framework treaty to facilitate continued supplies of hydrocarbons both as a primary fuel and as a source of feedstock for the UK chemical industry. I know that the issues are also important for Grangemouth, Mossmorran and other downstream activities within the chemicals industry. In the context of the treaty, it will be important to get the infrastructure right to facilitate
the flow of hydrocarbons across the median line. Discussions have already taken place in Pilot on how, in doing that, we balance the need to maximize the use of existing infrastructure and the need to leave open the option for new pipelines to enhance capacity. That is a difficult equation and an important one to get right.There are under consideration a number of potential projects to bring additional supplies of gas to the UK. There are different views on the necessity and desirability of those projects, but I welcome that interest in the UK market. It will be important for the UK to have as many import options as possible as we move towards becoming a net annual importer of gas later in the decade. It is for the market to determine which of the various projects under consideration will ultimately go ahead. The Government's role is to set the right political and regulatory framework to ensure that commercially driven projects are not impeded.
My hon. Friend has raised three diverse and significant issues, and I have had a little more time to respond to them than I would normally have had. The third issue in particular has immense implications for the future of not only the oil and gas industries, but the chemical industries in Scotland and the UK as a whole. I should be pleased to respond to any point that I have not covered in correspondence with my hon. Friend and other hon. Members.
- Adjourned accordingly at fifteen minutes to Five o'clock.
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