Northern Ireland Energy Holdings and Scotia Gas Networks have been named the preferred applicants for new licences to take forward the 'Gas to the West' project.

The Utility Regulator announced the applicants following the publication of its consultation paper.

The licences will push forward plans to extend natural gas to the main towns in the West, including Dungannon, Coalisland, Cookstown, Magherafelt, Omagh, Strabane, Enniskillen, and Derrylin.

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Enterprise, Trade & Investment Minister, Arlene Foster, said: "I am fully committed to encouraging extension of the gas network where this is economically viable. Today's news represents an important stage in the £200 million Gas to the West project. This will offer natural gas to up to 40,000 business and domestic consumers in the West.

"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. 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."

(CD/JP)