Varied Prospects For Gas Industry

Press, Volume CIII, Issue 30603, 20 November 1964, Page 3

Varied Prospects For Gas Industry

(New Zealand Press Association) WELLINGTON, November 19. Natural gas and new techniques in gasmaking had changed the picture in the gas industry in New Zealand, said the Minister of Mines (Mr Shand) to the annual conference of the gas association of New Zealand.

For gas undertakings interested in the development of natural gas resources at Kapuni, the immediate future was far from a “bed of roses,” he warned. Only preliminary reports were available on the feasibility of using gas of this sort. “It is a marginal venture which will involve a huge investment and probably no large profit. It is a tremendous challenge to make a success of an undertaking that will require more detailed investigation,” Mr Shand said. He felt the Government would give the project all the assistance it could. “If we undertake the venture we will be in it up to our necks. Large sums for the pipeline will be involved.” For other gas undertakings

not interested in the natural gas, the future was sounder than it had been for many years. “You are not out of the woods, but new methods of gas making and the use of oil should make it possible to keep costs down to levels that make them competitive with electricity. Asked whether the Government would participate in the natural gas projects, Mr Shand said there was nothing certain but he assessed the present situation as being in the realm of “a strong probability.” He felt the industry was entitled to a “feeling of restrained optimism.” The future was much more exciting and hopeful, and a gas undertaking could look forward with much 'greater confidence than for many years.