The Government has agreed to share the £100 million cost of building a pipeline to connect the national gas grid to the Corrib field off Mayo.

The Corrib co-venturers, Enterprise Energy, Statoil Exploration and Marathon Petroleum Hibernia - which discovered the field - have yet to announce when the deep water discovery will come into production. However, the Government statement indicated it would be by 2003.

Under the terms of the joint venture, announced yesterday by the Taoiseach, the pipeline will be constructed by Bord Gais and will "enable gas sales from the Corrib to commercial customers by early 2003".

The Corrib field is three quarters the size of the existing Kinsale gas field and has an estimated life of 15 years. The terms of the joint venture have not been disclosed.