Bord Gais is expected to confirm this week the appointment of Mr Gerry Walsh as its new chief executive. Mr Walsh, from Millstreet in Co Cork, has been head of business development/assets at the company for several years. He will succeed Mr Philip Cronin, who retired last month. The position carries an annual salary of up to £150,000. The central question facing Mr Walsh concerns the long-term ownership of the State-owned gas firm. The board has to make a submission on options for its future strategic direction to the Minister of State for Public Enterprise, Mr Joe Jacob, before the end of the year. The board's preference for its long-term ownership is not yet known, though its deliberations - with help from Arthur Andersen consultants - are said to be well advanced. Mr Walsh will play a crucial role in this process.
The options include floating Bord Gais, selling it to the private sector in the form of a trade sale, or taking an equity partner to assist in developing the business. While the final decision will be made by the Government, Mr Walsh will be charged with its implementation.
But other more pressing issues will face Bord Gais in advance of any ownership change.
Mr Walsh must prepare Bord Gais for three significant developments:
competition from other gas suppliers who will transmit gas through its system to industrial customers.
the extension of its existing network to include a link from Dublin to Galway, onwards to Limerick and then to Cork. This pipeline, which will cost some £200 million, will generate significant increased demand for gas. There is also a possibility that this line will be extended to Co Clare if the ESB chooses to use gas to generate electricity at its coal-fuelled plant at Moneypoint.
entry into the lucrative electricity generation business in partnership with Aughinish Alumina and ATCO Power.
The development of an electricity business will be crucial because Mr Walsh is said to favour a dual energy strategy. He played a key role in securing the company's involvement in the Aughinish project.
Industrial users of gas are also being courted by an Anglo-American consortium, Premier Transmission, and by a division of the US energy group, El Paso. Premier, owned by British Gas and US group KeySpan, plans a cross-Border link between Dublin and Belfast, while El Paso has proposed building a sub-sea interconnector linking Manchester and Dublin.
The Government is likely to adopt a market-led approach proposed earlier this month by a London consulting firm, Brattle. If these projects go ahead, it is unlikely that Bord Gais will be sanctioned in the short-term to construct a second interconnector, costing £300 million, parallel to its existing link between Dublin and Moffat in Scotland.
