Confidence In Kapuni Gas

Press, Volume CIV, Issue 30900, 5 November 1965, Page 16

Confidence In Kapuni Gas

(New Zealand Press Association) WELLINGTON, Nov. 4. The Gas Association of New Zealand was still “full of confidence” the Kapuni gas field would be developed and the gas piped to major gas undertakings of the North Island, the chairman, Mr A. Wilson, told the association’s annual conference today.

Mr Wilson said Kapuni gas could benefit the whole industry and final decision should be expedited. “Kapuni gas, used as gas. will also benefit all users of electricity and this means virtually everyone,” he said. “This is confirmed by the State Electricity Department, which agrees that £7.000,000 spent upon purifying Kapuni gas and piping it to Auckland and Wellington will save at least £6O million in hydroelectric development and £2O million in distribution costs.”

Mr Wilson said the gas. used as gas, “would be equivalent to the capacity of the mighty Benmore run at full load for 25 years. Turned into electricity it would not even equal little Karapiro. “Another yardstick for gauging Kapuni’s importance is that its proven potential is equivalent to the present requirement of the whole of the New Zealand gas industry for over 100 years,” he said. Mr Wilson said gas had a particular advantage as a peak load fuel and its wide acceptance would substantially improve the peak load factor of the electric supply authorities, thus reducing their costs. Since the second Zinder report was released there had been strong opposition by the oil consortium and the journal of the electric supply authorities to the piping of gas, Mr Wilson said.

“Opposition by the oil group is understandable because if they could have sold the full daily production of the field to the State Electricity Department, this would have enabled them to develop the full potential of condensate more quickly for processing at the Whangarei refinery.” he said.

“The experts report that there is no economic case for a base load generating station at Kapuni as compared to the gas being used as gas, but if the additional reserve content of the field is proved by a further well drilling, then there could be a proposal for peak load generating stations at Auckland and Wellington to operate in the early years.” According to Mr Shattuck (the Government’s consultant), the energy content of the condensate represents only about one-third of the energy content of the field. “Therefore, the national interest dictates that development of the major potential in respect of natural gas, propane and butane, should have pride of place and must not be sacrificed for the fuller immediate recovery of the condensate.” Mr Wilson said.