More Studies Of Kapuni Before Decision On Use

Press, Volume CIII, Issue 30512, 6 August 1964, Page 1

More Studies Of Kapuni Before Decision On Use

(New Zealand Press Association) WELLINGTON, August 5. Detailed economic and engineering studies had yet to be undertaken before the best use of natural gas from the Kapuni field could finally be determined, the Prime Minister (Mr Holyoake) said today, after a meeting of ministers with Mr J. G. Shattuck, the American consultant engaged by the Govern* ment to investigate the possible uses of the Kapuni gas.

Mr Holyoake said Mr Shattuck’s report and his conclusions, presented to the Minister of Mines and Electricity (Mr Shand) on Monday, would not be released for publication until it had been considered further by the Government and discussed with all the parties concerned. Mr Holyoake said the Government’s order of preference for the use of the gas was: (a) For the development of a petro-ehemical industry should that in any way be practicable. (b) For use as a premium fuel in the cities of Auckland or Wellington or both.

(c) For the generation of electricity. (d) As an industrial fuel in competition with coal or fuel oil.

“This morning’s discussions revolved round these four points,” Mr Holyoake said. “Mr Shuttuck discussed the broad principles involved and also explained certain technical problems and some of the ecomonic implications.” “Mr Shattuck also gave a very complete picture of the possibilities of the Kapuni field and of the major factors to be considered in next integrating this source of energy with New Zealand’s established power resources. “1 was glad to express to Mr Shuttuck this morning the Government’s deep appreciation of his expert services and of the four months of intensive work he had put into his investigations,” Mr Holyoake said. This had been reflected in the quality of the comprehensive and most helpful report he had produced. Mr Holyoake said he felt bound to point out that the first optimistic reports of the

value and possible scope of the Kapuni strike had been considerably revised by later appraisals. Nevertheless, Mr Shattuck’s report confirmed that New Zealand's first domestic petroleum supply would make an important contribution to the national economy.

[Power Report Page 101