Use Of Kapuni Gas For Electricity Advocated

Press, Volume CIV, Issue 30856, 15 September 1965, Page 22

Use Of Kapuni Gas For Electricity Advocated

"If natural gas is to be piped across the North Island, there is little doubt that some financial assistance will be required from the taxpayer,” says a leading article in "Live Lines,” the journal of the Electrical Supply Authorities’ Association of New Zealand.

“If the gas were used for electricity generation, no such assistance would be required. The electricity transmission and distribution system is in being now; the gas pipeline is a further economic drain on our future hard-pressed capital and manpower resources.

“It would be difficult for anyone to make a decision on the use of Kapuni natural gas using only the information available in the two printed Shattuck reports.” says “Live Lines." Whether there is further information available to the Government which makes the decision easier, presumably only the Government knows. As printed, the reports do not adequately state all the necessary facts on which a decision should be based. “No detailed information is included on the subject of recent advances in gas-turbine electricity generators which considerably reduce the losses and improve efficiency. The 1964 report assumed transmission losses of 16 per cent if electricity were generated from the gas; but there has been no further comment about the considerably lower

losses and savings in transmission costs if the electricity were used in the Taranaki Province.

“An electrical generating station near Stratford would entail a capital cost of about £26 a kilowatt to erect and would generate electricity at below 0.5 d a unit, figures which are most economical on present day costs. If the natural gas is not used for electricity generation at the well-head then future generating stations will be required to operate using imported oil or, possibly, the ’ purified gas from a pipeline. ■ What, may one ask, will be I the added cost involved in ’ such an arrangement? “The electrical supply inj dustry agrees that our natural i fuels should be used for the i benefit of New Zealand’s nai tional economy, but there is i need for much greater assurI ance than is at present available that thenational | economy will benefit from , the use of Kapuni natural gas as a premium fuel. “It would be a tragedy if an irrevocable decision w’ere made without reference to all the facts. We can only hope that the oil prospecting firm has had an opportunity to place before the Government the results of its investigations, a spokesman for the firm has publicly stated that the Shattuck report was heavily biased in favour of gas and against electricity. Surely a decision will not be made solely on such a report.