A group backed by businessman Mr Denis O'Brien has failed to secure gas for a power station it plans to build in west Dublin.
The group sought the right to supplies of gas in a competition run by the electricity regulator in which Viridian, Rolls Royce and the ESB were successful. The competition was necessary because gas-fired power plants were heavy consumers of gas and capacity on Bord Gais's network was limited.
The allocation by the regulator, Mr Tom Reeves, was originally planned for July. The process, based on his assessment of which plants would be "first to commission", was criticised by a number of industry figures. They argued that it would be difficult to distinguish between projects some of which were at the early stages of development.
The allocation was also the subject of a dialogue between Mr Reeves and the European Commission's competition directorate. The development yesterday was the second blow to Mr O'Brien's group, ePower, which was refused planning permission earlier this year for a power station near Navan, Co Meath.
The group subsequently took 40 per cent of a joint venture owned by BP Amoco and by US businessman, Mr Larry Thomas, which intends to build a plant at Mulhuddart, west Dublin.
While ePower has already challenged a decision by Mr Reeves in the courts, its response to this latest setback was not yet clear. In a statement, the group said it was disappointed.
Mr Reeves' allocation was "only one" of a number of gas procurement options. It claimed: "This allocation is not a critical factor for the project and the project is well on track to meet its scheduled commissioning date."
ESB's 50:50 joint venture with Statoil, known as Synergen, has secured enough gas to generate about 300 MW of power - 75 per cent of its target.
When asked whether it was disappointed, an ePower spokesman last night said: "It is not a matter of concern because the joint venture is convinced that there is no real issue in relation to the gas capacity situation."
Synergen would continue to develop a 400 MW plant worth £200 million, which will would supply power into the national grid by the end of 2001.
Viridian's proposed plant at Huntstown, north Dublin, has secured enough gas to generate 330 megawatts of power. Its 50:50 joint venture with CRH, known as Huntstown Power, is developing a £170 million plant which will be operational by the summer of 2002.
CRH put 70 per cent of its stake in the project on the market last June. When asked yesterday whether it was poised to close a deal, Huntstown Power chief executive Mr David de Casseres said: "Discussions continue on that one. There isn't anything to report yet. The parties need more time." "
Rolls Royce controls Dungarvan Energy, which is believed to have secured in excess of 100 MW for its project in Co Waterford.
