FUTURE OF GAS INDUSTRY

Press, Volume XCIII, Issue 27987, 6 June 1956, Page 8

FUTURE OF GAS INDUSTRY

SUGGESTED ADOPTION OF NEW PLANT

RISE IN COSTS UNDER PRESENT SYSTEM

(New Zealand 'Press Association) WELLINGTON, June 5.

“The gas industry is in a dilemma and in a delicate position politically,” said Dr. E. Marsden, a former Secretary of the Department of Scientific and Industrial Research, in an address to the Wellington Rotary Club today. He said the Wellipgton Gas Company had always been efficiently managed, always paid dividends, and served the community well. Electricity at present prices was more than competitive, and had many more uses than gas in the household. Coal suitable for gas making had become scarce and dear, said Dr. Marsden. The solution would be either to prepare for a winding up in 10 years’ time, with increased subsidies temporarily, or possibly to contemplate a more complete gasification plant of the Lurgi type which, if the load could be quintupled, would result in a purer gas at about half the price from poorer types of coal. Purchase and operation of gas plants by the Government or power boards and sale of gas at competitive prices with electricity might well put up the cost of electricity by 10 per cent., said Dr. Marsden. “Because of the increased estimate of costs of the Waikato coal-electric plant, it is now being questioned whether it should have been contemplated, though I feel that the urgency for production of more electricity forced the issue,” said Dr. Marsden.

“A Lurgi gasification plant would give in the Auckland district the same heat in the form of gas, using about half the coal, and at a capital cost of about half.” he said.