Bord Gáis
Encyclopedia
Bord Gáis Éireann normally branded as Bord Gáis, is the main supplier and distributor of pipeline
natural gas
in the Republic of Ireland
. The company has built an extensive network across Ireland. The company supplies gas to domestic and industrial customers on a fully regulated basis. The tariffs for customers are determined by the Commission for Energy Regulation
.
by the Irish government in 1975 to replace a series of private-sector small city-based gas companies, some of whom had got into financial trouble. The company was originally established as a private limited company by shares, Bord Gáis Éireann Teoranta, before being converted to a statutory corporation under the Gas Act 1976, the primary legislation under which BGE operates.
The oldest of the small private companies was the Alliance and Dublin Consumers' Gas Company, which had been founded in the early nineteenth century by Daniel O'Connell
, a prominent Irish politician and Lord Mayor of Dublin
. After initially supplying the company (known simply as Dublin Gas by the 1980s) with wholesale natural gas, Bord Gáis acquired the assets of the company when it went into receivership in 1987, including its head office in D'Olier Street, Dublin. Other town gas companies were acquired by Bord Gáis in Cork, Limerick, Clonmel, and Kilkenny. Bord Gáis is headquartered in Cork city, though it also has had a substantial presence in Dublin since the acquisition of the assets of Dublin Gas. In 2002 Bord Gáis sold the landmark Dublin Gas head office building in Dublin to Trinity College Dublin, and moved to purpose built premises in Foley Street which is now the main offices of Bord Gáis Energy.
For nearly two decades the main supply of gas available for Bord Gáis came from a Marathon Petroleum
owned gasfield near Kinsale
, off the Cork
coast. This gas field had been found in 1971, the same year as the foundation of the Nuclear Energy Board
. This gas field comes ashore at Inch, Co. Cork.
, Dublin, Galway
, Limerick
and Waterford
with a number of spurs, this network is connected to Scotland
via two separate interconnectors and also has a spur to the Isle of Man
which supplies the Manx Electricity Authority. Most of its modern gas supply is imported. A new gas field known as the Corrib off the Mayo
coast is scheduled to come onstream by 2008, however Bord Gais will only be purchasing a small amount of the offtake, the majority will be traded on the International Petroleum Exchange.
On 18 February 2009, Bord Gáis Energy Supply rebranded as Bord Gáis Energy, with a new logo. It also entered the domestic electricity market on that date, having supplied electricity to business customers for some time.
. The structure of Bord Gáis has evolved over time to adapt to regulatory and market conditions. Bord Gáis now has two main business streams – Networks (formerly Transmission and Distribution) and Energy (formerly Energy Supply). The company’s primary activities are the development and operation of gas networks and the supply of gas and electricity. Further restructuring is underway to meet the legal unbundling requirements of the EU Gas Directive 2003/55/EC. The Gas Directive requires that, in the case of vertically integrated utilities such as Bord Gáis, the Transmission System Operator (TSO) and the Distribution System Operator (DSO) functions to be legally and functionally unbundled from activities not related to these functions, although a combined DSO/TSO is permissible. Therefore a new independent subsidiary, Gaslink, has been established to fulfil the functions of the Irish TSO and DSO and will gradually take over much of the operations of Bord Gáis Networks.
All natural gas customers are now eligible to change gas supplier from Bord Gáis Energy to an alternative shipper.
and ESB
Customer Supply. The market was deregulated in 2007.It offers 10% discount off ESB Customer Supply prices similar to the discount on offer by Airtricity
also, during 2009 and 5% off it from 2010, and 2011. It offers an additional 2% discount for direct debit customers over Airtricity
and a further 2% for Bord Gáis gas customers as at that date.
In June 2010, Bord Gáis created Ireland's first energy index
. A pipeline from Carrickfergus
to Derry
was completed in October 2004 and now serves Coolkeeragh Power Station
. A second pipeline, known as the South-North pipeline, was commissioned in October 2006. It runs from Gormanston
in the Republic to join the Carrick/Derry pipeline near Antrim creating an all-Ireland network and providing redundancy
in case of problems with either Scotland - Northern Ireland pipeline or the Scotland - Republic of Ireland interconnectors.
The Utility Regulator for Northern Ireland has awarded Bord Gáis a licence to supply homes and businesses in the towns and cities near the two pipelines - Antrim, Armagh
, Ballymena
, Ballymoney
, Banbridge
, Craigavon
, Derry
, Limavady
and Newry
- where the local subsidiaries of BG use the trading name of firmus energy. On 1 December 2005, firmus launched their first supply in Northern Ireland, to the large Michelin
tyre
factory in Ballymena. On 25 April 2006 firmus connected its first residential customers in Derry.
The decision to award this licence was widely disputed and Phoenix Gas
, the incumbent in Belfast
and the surrounding area, launched a judicial review of the decision to award it to BGE, they claimed that it was more of a political decision and they claimed that Bord Gáis will lose a significant amount of money and that the business will be loss making.
firmus energy are also competing to supply gas and electricity to large industrial and commercial customers across Northern Ireland. They supply gas in Belfast
to Northern Ireland's largest bakery, Allied Bakeries
and have been awarded an electricity supply licence. 0n 30 March 2009, the company said it had signed up Ballymena
soft drink
s manufacturer Norbev as its first electricity customer.
In the autumn of 2009, a consortium of BGE (Northern Ireland) and Storengy, a company of GDF Suez
, will be undertaking a seismic survey
of land in the Larne
area to determine if there are salt
layers that could be used for the storage of natural gas.
Pipeline transport
Pipeline transport is the transportation of goods through a pipe. Most commonly, liquids and gases are sent, but pneumatic tubes that transport solid capsules using compressed air are also used....
natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
in the Republic of Ireland
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
. The company has built an extensive network across Ireland. The company supplies gas to domestic and industrial customers on a fully regulated basis. The tariffs for customers are determined by the Commission for Energy Regulation
Commission for Energy Regulation
The Commission for Energy Regulation-An Coimisiún Rialall Fuinnimh is the independent body responsible for overseeing the liberalisation of Ireland's energy sector regulating the electricity and natural gas sectors in the Republic of Ireland. The CER was initially established as the Commission for...
.
Origins
Bord Gáis Éireann was established as a semi-state companyState-sponsored bodies of the Republic of Ireland
A State-Sponsored Body is the name given in Ireland to a state-owned enterprise , that is to say, a commercial business which is benficially owned, either completely or majority, by the Irish Government...
by the Irish government in 1975 to replace a series of private-sector small city-based gas companies, some of whom had got into financial trouble. The company was originally established as a private limited company by shares, Bord Gáis Éireann Teoranta, before being converted to a statutory corporation under the Gas Act 1976, the primary legislation under which BGE operates.
The oldest of the small private companies was the Alliance and Dublin Consumers' Gas Company, which had been founded in the early nineteenth century by Daniel O'Connell
Daniel O'Connell
Daniel O'Connell Daniel O'Connell Daniel O'Connell (6 August 1775 – 15 May 1847; often referred to as The Liberator, or The Emancipator, was an Irish political leader in the first half of the 19th century...
, a prominent Irish politician and Lord Mayor of Dublin
Lord Mayor of Dublin
The Lord Mayor of Dublin is the honorific title of the Chairman of Dublin City Council which is the local government body for the city of Dublin, the capital of Ireland. The incumbent is Labour Party Councillor Andrew Montague. The office holder is elected annually by the members of the...
. After initially supplying the company (known simply as Dublin Gas by the 1980s) with wholesale natural gas, Bord Gáis acquired the assets of the company when it went into receivership in 1987, including its head office in D'Olier Street, Dublin. Other town gas companies were acquired by Bord Gáis in Cork, Limerick, Clonmel, and Kilkenny. Bord Gáis is headquartered in Cork city, though it also has had a substantial presence in Dublin since the acquisition of the assets of Dublin Gas. In 2002 Bord Gáis sold the landmark Dublin Gas head office building in Dublin to Trinity College Dublin, and moved to purpose built premises in Foley Street which is now the main offices of Bord Gáis Energy.
For nearly two decades the main supply of gas available for Bord Gáis came from a Marathon Petroleum
Marathon Oil
Marathon Oil Corporation is a United States-based oil and natural gas exploration and production company. Principal exploration activities are in the United States, Norway, Equatorial Guinea, Angola and Canada. Principal development activities are in the United States, the United Kingdom, Norway,...
owned gasfield near Kinsale
Kinsale
Kinsale is a town in County Cork, Ireland. Located some 25 km south of Cork City on the coast near the Old Head of Kinsale, it sits at the mouth of the River Bandon and has a population of 2,257 which increases substantially during the summer months when the tourist season is at its peak and...
, off the Cork
County Cork
County Cork is a county in Ireland. It is located in the South-West Region and is also part of the province of Munster. It is named after the city of Cork . Cork County Council is the local authority for the county...
coast. This gas field had been found in 1971, the same year as the foundation of the Nuclear Energy Board
Nuclear Energy Board
The Nuclear Energy Board was an Irish agency charged with developing nuclear power in Ireland. It was established in Ireland on November 30, 1973 by the ....
. This gas field comes ashore at Inch, Co. Cork.
Bord Gáis Networks
The company has a network between CorkCork (city)
Cork is the second largest city in the Republic of Ireland and the island of Ireland's third most populous city. It is the principal city and administrative centre of County Cork and the largest city in the province of Munster. Cork has a population of 119,418, while the addition of the suburban...
, Dublin, Galway
Galway
Galway or City of Galway is a city in County Galway, Republic of Ireland. It is the sixth largest and the fastest-growing city in Ireland. It is also the third largest city within the Republic and the only city in the Province of Connacht. Located on the west coast of Ireland, it sits on the...
, Limerick
Limerick
Limerick is the third largest city in the Republic of Ireland, and the principal city of County Limerick and Ireland's Mid-West Region. It is the fifth most populous city in all of Ireland. When taking the extra-municipal suburbs into account, Limerick is the third largest conurbation in the...
and Waterford
Waterford
Waterford is a city in the South-East Region of Ireland. It is the oldest city in the country and fifth largest by population. Waterford City Council is the local government authority for the city and its immediate hinterland...
with a number of spurs, this network is connected to Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
via two separate interconnectors and also has a spur to the Isle of Man
Isle of Man
The Isle of Man , otherwise known simply as Mann , is a self-governing British Crown Dependency, located in the Irish Sea between the islands of Great Britain and Ireland, within the British Isles. The head of state is Queen Elizabeth II, who holds the title of Lord of Mann. The Lord of Mann is...
which supplies the Manx Electricity Authority. Most of its modern gas supply is imported. A new gas field known as the Corrib off the Mayo
County Mayo
County Mayo is a county in Ireland. It is located in the West Region and is also part of the province of Connacht. It is named after the village of Mayo, which is now generally known as Mayo Abbey. Mayo County Council is the local authority for the county. The population of the county is 130,552...
coast is scheduled to come onstream by 2008, however Bord Gais will only be purchasing a small amount of the offtake, the majority will be traded on the International Petroleum Exchange.
Gaslink
On 4 July 2008, an "arms-length" subsidiary of Bord Gáis, Gaslink was established to perform the role of transmission and distribution system operator. For now, Bord Gáis Networks still exist and manages the network on behalf of Gaslink. It is planned however that many of its functions will transfer over to the new body http://www.gaslink.ie/index.jsp?&p=93&n=134Bord Gáis Energy
This is the retail (industrial, commercial and residential) division of its gas and electricity products and is based in Dublin.On 18 February 2009, Bord Gáis Energy Supply rebranded as Bord Gáis Energy, with a new logo. It also entered the domestic electricity market on that date, having supplied electricity to business customers for some time.
Deregulation of the Irish gas market
The major public utility companies underwent major reform in the early 2000s, following the creation of the Commission for Energy RegulationCommission for Energy Regulation
The Commission for Energy Regulation-An Coimisiún Rialall Fuinnimh is the independent body responsible for overseeing the liberalisation of Ireland's energy sector regulating the electricity and natural gas sectors in the Republic of Ireland. The CER was initially established as the Commission for...
. The structure of Bord Gáis has evolved over time to adapt to regulatory and market conditions. Bord Gáis now has two main business streams – Networks (formerly Transmission and Distribution) and Energy (formerly Energy Supply). The company’s primary activities are the development and operation of gas networks and the supply of gas and electricity. Further restructuring is underway to meet the legal unbundling requirements of the EU Gas Directive 2003/55/EC. The Gas Directive requires that, in the case of vertically integrated utilities such as Bord Gáis, the Transmission System Operator (TSO) and the Distribution System Operator (DSO) functions to be legally and functionally unbundled from activities not related to these functions, although a combined DSO/TSO is permissible. Therefore a new independent subsidiary, Gaslink, has been established to fulfil the functions of the Irish TSO and DSO and will gradually take over much of the operations of Bord Gáis Networks.
All natural gas customers are now eligible to change gas supplier from Bord Gáis Energy to an alternative shipper.
Deregulation of the Irish electricity market
On 18 February 2009, Bord Gáis Energy entered the residential market, joining AirtricityAirtricity
Airtricity was founded in 1997 in the Republic of Ireland and now is a renewable energy company owned by Scottish and Southern Energy...
and ESB
Electricity Supply Board
The Electricity Supply Board , is a semi-state electricity company in Ireland. While historically a monopoly, the ESB now operates as a commercial semi-state concern in a liberalised and competitive market...
Customer Supply. The market was deregulated in 2007.It offers 10% discount off ESB Customer Supply prices similar to the discount on offer by Airtricity
Airtricity
Airtricity was founded in 1997 in the Republic of Ireland and now is a renewable energy company owned by Scottish and Southern Energy...
also, during 2009 and 5% off it from 2010, and 2011. It offers an additional 2% discount for direct debit customers over Airtricity
Airtricity
Airtricity was founded in 1997 in the Republic of Ireland and now is a renewable energy company owned by Scottish and Southern Energy...
and a further 2% for Bord Gáis gas customers as at that date.
Market share
As of May 2010 Bord Gáis has over one million gas and electricity customers.In June 2010, Bord Gáis created Ireland's first energy index
Home services
Bord Gáis provide a number of value added services such as boiler servicing and power flushing. They have recently opened the first web shop of its kind.Subsidiary companies
Bord Gáis operates a number of subsidiary companies BG CoGen and Combined Heat and Power business and Aurora Telecom a telco venture which is now a dark fibre leasing company.SWS
Bord Gáis bought the SWS wind energy company in late 2009. SWS operates a number of wind farms in the Munster and Ulster.firmus
Bord Gáis has an ambitious plan to develop the gas market in Northern IrelandNorthern Ireland
Northern Ireland is one of the four countries of the United Kingdom. Situated in the north-east of the island of Ireland, it shares a border with the Republic of Ireland to the south and west...
. A pipeline from Carrickfergus
Carrickfergus
Carrickfergus , known locally and colloquially as "Carrick", is a large town in County Antrim, Northern Ireland. It is located on the north shore of Belfast Lough, from Belfast. The town had a population of 27,201 at the 2001 Census and takes its name from Fergus Mór mac Eirc, the 6th century king...
to Derry
Derry
Derry or Londonderry is the second-biggest city in Northern Ireland and the fourth-biggest city on the island of Ireland. The name Derry is an anglicisation of the Irish name Doire or Doire Cholmcille meaning "oak-wood of Colmcille"...
was completed in October 2004 and now serves Coolkeeragh Power Station
Coolkeeragh power station
Coolkeeragh power station is a power station near Derry in Northern Ireland.The station produces 400 megawatts from a gas fired combined cycle power plant, constructed on the site of the old Coolkeeragh power station...
. A second pipeline, known as the South-North pipeline, was commissioned in October 2006. It runs from Gormanston
Gormanston, County Meath
Gormanston or Gormanstown is a village in County Meath, Ireland. It is near the mouth of the River Delvin and the northern border of County Dublin.-Access:Gormanston is near the M1 Dublin-Belfast road...
in the Republic to join the Carrick/Derry pipeline near Antrim creating an all-Ireland network and providing redundancy
Redundancy (engineering)
In engineering, redundancy is the duplication of critical components or functions of a system with the intention of increasing reliability of the system, usually in the case of a backup or fail-safe....
in case of problems with either Scotland - Northern Ireland pipeline or the Scotland - Republic of Ireland interconnectors.
The Utility Regulator for Northern Ireland has awarded Bord Gáis a licence to supply homes and businesses in the towns and cities near the two pipelines - Antrim, Armagh
Armagh
Armagh is a large settlement in Northern Ireland, and the county town of County Armagh. It is a site of historical importance for both Celtic paganism and Christianity and is the seat, for both the Roman Catholic Church and the Church of Ireland, of the Archbishop of Armagh...
, Ballymena
Ballymena
Ballymena is a large town in County Antrim, Northern Ireland and the seat of Ballymena Borough Council. Ballymena had a population of 28,717 people in the 2001 Census....
, Ballymoney
Ballymoney
Ballymoney is a small town in County Antrim, Northern Ireland. It had a population of 9,021 people in the 2001 Census. It is currently served by Ballymoney Borough Council....
, Banbridge
Banbridge
Banbridge is a town in County Down, Northern Ireland. It lies on the River Bann and the A1 road. It was named after a bridge built over the Bann in 1712. The town grew as a coaching stop on the road from Belfast to Dublin and thrived from Irish linen manufacturing...
, Craigavon
Craigavon
Craigavon is a settlement in north County Armagh, Northern Ireland. It was a planned settlement that was begun in 1965 and named after Northern Ireland's first Prime Minister — James Craig, 1st Viscount Craigavon. It was intended to be a linear city incorporating Lurgan and Portadown, but this plan...
, Derry
Derry
Derry or Londonderry is the second-biggest city in Northern Ireland and the fourth-biggest city on the island of Ireland. The name Derry is an anglicisation of the Irish name Doire or Doire Cholmcille meaning "oak-wood of Colmcille"...
, Limavady
Limavady
Limavady is a market town in County Londonderry, Northern Ireland, with Binevenagh as a backdrop. It lies east of Derry and south west of Coleraine. It had a population of 12,135 people in the 2001 Census, an increase of some 17% compared to 1991...
and Newry
Newry
Newry is a city in Northern Ireland. The River Clanrye, which runs through the city, formed the historic border between County Armagh and County Down. It is from Belfast and from Dublin. Newry had a population of 27,433 at the 2001 Census, while Newry and Mourne Council Area had a population...
- where the local subsidiaries of BG use the trading name of firmus energy. On 1 December 2005, firmus launched their first supply in Northern Ireland, to the large Michelin
Michelin
Michelin is a tyre manufacturer based in Clermont-Ferrand in the Auvergne région of France. It is one of the two largest tyre manufacturers in the world along with Bridgestone. In addition to the Michelin brand, it also owns the BFGoodrich, Kleber, Riken, Kormoran and Uniroyal tyre brands...
tyre
Tire
A tire or tyre is a ring-shaped covering that fits around a wheel rim to protect it and enable better vehicle performance by providing a flexible cushion that absorbs shock while keeping the wheel in close contact with the ground...
factory in Ballymena. On 25 April 2006 firmus connected its first residential customers in Derry.
The decision to award this licence was widely disputed and Phoenix Gas
Phoenix Natural Gas
Phoenix Natural Gas is the largest gas distribution business in Northern Ireland, being the owner and operator of the licence for the distribution network in the Greater Belfast area...
, the incumbent in Belfast
Belfast
Belfast is the capital of and largest city in Northern Ireland. By population, it is the 14th biggest city in the United Kingdom and second biggest on the island of Ireland . It is the seat of the devolved government and legislative Northern Ireland Assembly...
and the surrounding area, launched a judicial review of the decision to award it to BGE, they claimed that it was more of a political decision and they claimed that Bord Gáis will lose a significant amount of money and that the business will be loss making.
firmus energy are also competing to supply gas and electricity to large industrial and commercial customers across Northern Ireland. They supply gas in Belfast
Belfast
Belfast is the capital of and largest city in Northern Ireland. By population, it is the 14th biggest city in the United Kingdom and second biggest on the island of Ireland . It is the seat of the devolved government and legislative Northern Ireland Assembly...
to Northern Ireland's largest bakery, Allied Bakeries
Associated British Foods
Associated British Foods plc is a global food, ingredients and retail company headquartered in London, United Kingdom. Its ingredients division is the world's second largest producer of both sugar and baker's yeast and a major producer of other ingredients including emulsifiers, enzymes and lactose...
and have been awarded an electricity supply licence. 0n 30 March 2009, the company said it had signed up Ballymena
Ballymena
Ballymena is a large town in County Antrim, Northern Ireland and the seat of Ballymena Borough Council. Ballymena had a population of 28,717 people in the 2001 Census....
soft drink
Soft drink
A soft drink is a non-alcoholic beverage that typically contains water , a sweetener, and a flavoring agent...
s manufacturer Norbev as its first electricity customer.
In the autumn of 2009, a consortium of BGE (Northern Ireland) and Storengy, a company of GDF Suez
GDF Suez
GDF Suez S.A. is a French multinational energy company which operates in the fields of electricity generation and distribution, natural gas and renewable energy. The world's largest utility after taking control of Britain's International Power, the company was initially formed by the merger of Gaz...
, will be undertaking a seismic survey
Reflection seismology
Reflection seismology is a method of exploration geophysics that uses the principles of seismology to estimate the properties of the Earth's subsurface from reflected seismic waves. The method requires a controlled seismic source of energy, such as dynamite/Tovex, a specialized air gun or a...
of land in the Larne
Larne
Larne is a substantial seaport and industrial market town on the east coast of County Antrim, Northern Ireland with a population of 18,228 people in the 2001 Census. As of 2011, there are about 31,000 residents in the greater Larne area. It has been used as a seaport for over 1,000 years, and is...
area to determine if there are salt
Salt
In chemistry, salts are ionic compounds that result from the neutralization reaction of an acid and a base. They are composed of cations and anions so that the product is electrically neutral...
layers that could be used for the storage of natural gas.
Former operations
Bord Gáis Energy has twelve stores (branded Energy Supply Stores) around the country, however they are run on a franchise basis and not by Bord Gáis itself. In 2002 Bord Gáis Natural Gas Showroom in D'Olier Street, operated by the company itself, was closed, in 2006 its Cork company-owned showroom was also closed.Main offices
- HQ - Gasworks Road, Cork 51.8950°N 8.4606°W
- Energy, IT & Shared Services - Foley Street, Dublin 1 53.3528°N 6.2493°W
- Networks - Arena Road, Sandyford Business Park, Dublin 18 53.2735°N 6.2083°W
- Firmus Energy - Kilbegs Business Park, Antrim BT41 4NN 54.7322°N 6.2389°W
- Gaslink - 6 Lapps Quay, Cork 51.8988°N 8.4640°W