Planning The Use Of Natural Gas

Press, Volume CI, Issue 29859, 27 June 1962, Page 9

Planning The Use Of Natural Gas

(New Zealand Pnes Aetociation) WELLINGTON, June 26. The Government has set up a special committee to prepare for the development of the country’s natural gas resources. It will pave the way for the Ministry of Fuel and Power.

Announcing this today, the Prime Minister (Mr Holyoake) said an offiotal committee on fuel and power had been established under the direction of the Minister of Industries and Commerce (Mr Marshall). The committee would ensure that legislation was prepared for enactment this year, and that all other steps are taken without delay to promote the economic use of natural gas and the effective co-ordination of all the nation’s fuel and power resources The chairman and executive officer of the committee is the Secretary of Industries and Commerce (Dr. W. B Sutch). The members comprise officers nominated from the Departments of Electricity, Industries and Commerce, Mines, and the Public Service Commission The committee will call on the services of officers from other departments if necessary. "The Government is determined that natural gas from Kapuni or elsewhere should be put to work with the least possible delay, but a number of complex problems have to be settled before this can be accomplished,” said Mr Holyoake. ‘‘ln the initial stages of development it is considered that natural gas should be carried by pipelines to a limited number of substantial North Island markets for domestic and industrial use as a direct source of heat energy This will require legislative provisions and far-reaching policy and administrative decisions.” Mr Holyoake said many important policy decisions would be involved in the ownership, management, production. and regulation of gas and oil wells, and in the reticulation and sale of natural

gas. The possibility of discoveries of gas elsewhere in New Zealand would have to be taken into account. Other considerations to be examined were the consequences of natural gas development for the generation of electricity and the coal mining industry, the implications for associated and ancillary industries, such as the oil refinery at Whangarei, the potential industrial and domestic demand for natural gas and petroleum, the development of new industries, such as petrochemicals; and the manufacture in New Zealand of equipment, such as pipes, required in the distribution of gas.