'Gas Will Cost Less As Fuel'

Press, Volume CVI, Issue 31097, 28 June 1966, Page 1

'Gas Will Cost Less As Fuel '

(New Zealand Press Association> WELLINGTON, June 27. The price for Kapuni gas used domestically is likely to be slightly less attractive to the oil companies than the price they could expect if the gas was used to generate electricity at or near Kapuni.

The Minister of Mines (Mr Shand) said this today, when predicting the results of inquiries into the use of the gas, now in their final stages. “Our consultants in the United States cabled some two weeks ago to the effect that the information should be in our hands last week,” he said. “There has been a further slight delay. We now have cable advice containing the headings of cost, and are expecting the full report daily. Immediately upon receipt of this report, I expect to be in a position to make a firm

offer to the members of the oil consortium. “The question, still to be negotiated is whether the price is fair and reasonable in the circumstances.” Mr Shand said that within days of receipt of the report he should be in a position to recommend to the Cabinet that an offer be made to the owners of the gas. If they accepted the offer, work could begin immediately. “If they do wot accept the offer they will no doubt make counter proposals which the Government will have to consider,” Mr ijhand said.