Greater Scope Seen For Gas Industry

Press, Volume CIX, Issue 32221, 13 February 1970, Page 12

Greater Scope Seen For Gas Industry

The trend overseas for the gas industry to capture an increasing proportion of the total energy market should also become apparent this year in New Zealand, the Minister of Electricity (Mr Allen) said in Christchurch yesterday when he opened the annual conference of the Gas Association of New Zealand.

i "Expansion of our energj jresources for industrial and [domestic use in one form or [another is vital to the development of this country.” Natural Gas I This month, particularly interest would be centred on Kapuni and the changes which [natural gas would bring 'about. The Government had invested more than S2om and nine gas undertakings had invested other large sums so that the changes could be brought about. As each undertaking on the pipeline acquired experience of the advantages natural gas could offer marketing ability should improve and sales increase. In the beginning to help to make good use of the national investment in the pipeline, the New Zealand Electricity Department would be burning natural gas in its turbines at Otara. “Generating electricity, however, is a comparatively wasteful way of using gas, so we must aim at expanding [ the industrial, commercial and domestic markets for natural gas as quickly as possible”

"I can tell you that it is certainly iny intention that gas should have a larger share of the energy market here," he said. Mr Allen said that for the gas industry to play its part it must raise its contribution to the nation’s energy resources above the 1 per cent which was its present share.

Use Of Coal He said he did not expect the over-all use of coal to diminish "The National Development Conference forecast that, although use of coal is likely to decrease for the next year or two. it could be expected that 1969 use could be exceeded by 1974," he said. “The steelworks and, on current planning, the New Plymouth power station, are expected to contribute t.i this result."

He said the Government and those associated with the gas industry looked forward to the time when the industry could do without subsidies. He was sure this was now foreseeable.

“But gas must be competitive with other forms of energy, with electricity and oil. I can assure you that the Government’s policy is to encourage this so that gas can in fact become a competitive, attractive and satisfactory alternative."

He said the investment required to produce energy from gas could be shown to be significantly lower than that required for electricity. The present legislation governing the gas industry was’ obsolete, he said. It was not designed for present-dav conditions.

“The Gas Council has been alive to this and is working towards having adequate and up-to date legislation drafted for the 1970 session of Parliament."