Lack of gas could stymie major Ross projects
MAJOR developpments in Ross-shire could be put in jeopardy because the Highlands’ gas supply has reached maximum capacity and cannot take new connections.
A North Star investigation has uncovered the shock setback which could have major repercussions for firms seeking future link-up.
And one major project in Easter Ross has already been affected by the lack of gas supply.
Concerns have been raised by whisky companies planning new distilleries in the Highlands, including a new £50 million distillery at Teaninch at Alness to be built by drinks giant Diageo.
A Diageo spokesman said: "Along with other Scotch whisky companies we have been looking for some time at how we can invest in local gas infrastructure to bring gas to a number of our distilleries across the Highlands and Speyside as part of the industry’s efforts to be environmentally sustainable.
"However, it has now become clear the underlying gas supply across the region is at capacity.
"In an effort to diversify the energy mix at the Teaninich distillery complex we also hoped to obtain additional gas supplies but this is not possible because of constrained supply."
Meanwhile, a taskforce has been set up to tackle the issue. It includes Scotia Gas Networks, Highlands and Islands Enterprise, specialist gas pipeline company Fulcrum, distillery companies, Moray Council, and MPs and MSPs of all parties.
In addition, chief secretary to the Treasury, Danny Alexander, has been made aware of the situation and has ordered infrastructure specialists in the government department to explore options to resolve the issue as quickly as possible.
He has already fired a warning shot that it could become an obstacle to jobs and investment in the region.
Scotland Gas Networks has confirmed to the North Star that the gas supply pipe which runs from Aberdeen to Alness now has no extra capacity.
Chloe Boyce, spokeswoman for Scotland Gas Networks, said: "The main gas network currently has no capacity for the extra load that has been requested, so we would need to reinforce the current infrastructure and recoup the associated costs accordingly.
"If we did not reinforce the network, existing customers would experience interruption to their supplies under high demand periods. We are obliged by our licence from the regulator to operate a safe and secure network and deliver a firm supply of gas to customers under these conditions."
It is understood that firms seeking connections have been asked for millions of pounds.
Mr Alexander said: "While decisions around individual projects to increase the capacity of the gas network are a commercial matter, it is vital that energy supply is not a bottleneck to investment which could support jobs and regional growth.
"I have therefore asked infrastructure specialists in the Treasury to engage with the parties concerned and explore options for resolving this issue as quickly as possible."
A spokesperson from Highlands and Islands Enterprise (HIE) said: "As part of the gas taskforce, HIE is launching a study into the issue of gas provision in the area.
"We are obviously concerned about the impact these capacity problems may have on businesses in the region and the study aims to assess the scale of the current constraint and to identify a range of potential solutions for the taskforce to discuss. The study is due to be completed in the early summer."
A Scottish Government spokesman said they were aware of the concerns over the gas capacity problem and have asked to be kept informed of the progress by the gas pipeline taskforce.
