Two companies have been selected as the preferred bidders to build a new gas pipeline to serve Strabane and Magherafelt.
Mutual Energy and Scotia Gas have been chosen for the Gas to West project.
Costing in the region of £200 million, with £32.5 million coming from the Department of Enterprise, the scheme will serve the North’s western counties and see a pipeline also serve towns such as Omagh, Enniskillen, Derrylinn, Dungannon, Coalisland and Cookstown.
Mutual controls the gas pipeline between Scotland and Northern Ireland while Scotia owns the Scottish network.
Enterprise Minister Arlene Foster welcomed the news which, she said, was an important stage in the £200m Gas to the West project.
“This will offer natural gas to up to 40,000 business and domestic consumers,” she said.
“As the cleanest burning fossil fuel, natural gas offers a greener, more efficient and convenient alternative to oil and coal. It will help to lower manufacturing and production costs for companies and improve business competitiveness.”
Ms Foster concluded: “In addition, it will provide domestic consumers with greater choice and benefits such as easier budgeting of energy costs by opting for a gas pre-payment meter.”
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