Kapuni Could Yield Nine Times Gas Industry’s Output

Press, Volume C, Issue 29673, 17 November 1961, Page 20

Kapuni Could Yield Nine Times Gas Industry’s Output

(New Zealand Press Association)

WELLINGTON, Nov. 16. The Kapuni natural gas field could yield nearly nine times the energy content of the present output of the New Zealand gas industry, said the chairman of the Gas Council, the Minister of Works (Mr Goosmanl at the gas industry conference in Wellington today. Describing the natural gas discovery as “most exciting” he said nothing likely to be of greater service to the New Zealand economy had occurred in the last few decades. ‘This looks like a big challenge to the gas industry,” he said. To use the natural gas from Kapuni would require a 10-fold expansion of the gas industry in the North Island. ‘‘This gas must be used or wasted in order to secure the enormous quantity of condensate —estimated to yield half a millio ntons of light crude oil—for the Whangarei refinery. It would be a terrible thing to waste that great source of energy,” said Mr Goosman. “The Gas industry which has long faced intense competition with imported oil now becomes an essential partner to the oil industry in New Zealand. Economic Usage "I am informed the most economical way to use natural gas is as gas—it is not economic to convert it to electricity. “Consideration must be given to a capital Investment of many millions of pounds. “An 18in or 20in pipeline to Auckland would cost about £lO million and a 12in pipeline to Wellington would cost £5 million to £7 million.

"The question now arises what industries can use natural gas—what new industries can be promoted because of a supply of cheap natural gas. I would think that the question of price would be the deciding factor.” The possibilities were tremendous, he said. Expansion woiild require the cooperation of all. “If the price is right—and it must be—-reticulation systems would have to be expanded to incorporate more consumers,” said Mr Goosman. “Dairy factories have already shown decided interest in a supply of natural gas, and the possibilities there are very great. Other Prospecting “Most of the activity will be in the North Island —we will not be able to transmit through the Cook Strait cable —but the South Island should reap certain benefits in being able to dispose of tar and certain other byproducts mpre easily. And who knows, gas and oil may be discovered in the South Island?” After the discovery at

Kapuni, the Cabinet set up a committee of Ministers to deal with the situation and also another of representatives of departments concerned, he said. The Gas Council held a preliminary discussion at its last meeting and decided to ask that a member of the gas industry be placed on the commttee. Four areas in New Zealand were being prospected for oil or natural gas. “I believe in three areas natural gas has been discovered, but in Kapuni the prospects are for gas in very large quantities, and condensate for the production of petrol,” said Mr Goosman. “It is estimated on the information available that 100 million cubic feet of natural gas may be produced daily, of which 40 million feet are carbon dioxide, leaving 60 million cubic feet a day with a calorific value of 1000 British thermal units to the cubic foot “This compares with the average daily make in New Zealand of less than 16 million cubic feet with a calorific value of 450 British thermal units,” he said.