Generating Power ‘Best Use For Gas’

Press, Volume CVI, Issue 31169, 20 September 1966, Page 6

Generating Power ‘Best Use For Gas’

(A’eio Zealand Press Association)

ROTORUA, September 19.

Recommendations to pipe Kapuni natural gas rather than use it to generate electricity on the site did not stand up to critical examination, Mr D. J. Boswell, of Wanganui, said in his presidential report to the Secretaries Association of the Electrical Supply Authorities Association of New Zealand.

The conference opened in Rotorua today. Mr Boswell, who is general manager of the Wanganui - Rangitikei Electric Power Board, said a committee set up by the main association to study the natural gas question had been denied access to information it required. At the last conference an address given by Mr D. S.

Watt, general manager of Shell, 8.P., and Todd Oil Services, Ltd., proved conclusive!}’ that Kapuni gas should: be used to generate electricity on the spot, he said. Much emphasis was placed l today on the fact that fuel I resources in New Zealand' were very limited and should be used to the maximum possible advantage, he said. “What is not said is that I if Kapuni gas is used as a primary fuel, it is a substitu-j tion for and not an addition : to the oresent amount of fuel [ available. “It becomes an addition; only to the extent that the usage will exceed the present; amount of gas provided from coal. “If the gas is used to generate electricity, every cubic foot is an addition to our present fuel resources,” said Mr Boswell. Mr Boswell said the Government had asked the oil consortium to accept a “less attractive” price if the gas was piped than if it were used for electricity on the site. “So that gas can be sold at competitive prices—10 per cent below the price of electricity—the Government expects the oil consortium to! ioin with the taxpayer and the electricity consumer to subsidise the project,” said Mr Boswell.