Kapuni gas field estimate up 84 p.c.

Press, Volume CXII, Issue 32959, 4 July 1972, Page 2

Kapuni gas field estimate up 84 p.c.

'New Zealand Press Association

NEW PLYMOUTH. July 3.

The Kapuni gas pipeline may be extended to other centres. A reassessment of the field estimates that the gas reserves are at least 84 per cent greater than originally thought.

The general manager of the Natural Gas Corporation (Mr R. M. O’Callahan) said it was too early for a detailed statement, but the corporation was studying a number of possibilities for using the increased proven potential of the field.

These possibilities included extending the pipeline, which supplies nine North Island centres, but Mr O’Callahan declined to elaborate on the proposal.

The supplying of large industrial consumers, which

the corporation’s treatment plant had not been capable of serving, was also being considered. "The nine undertakings now on the pipeline have first call on the additional gas and advice to this effect has gone to them today,” he said.

The Wellington reporter of

“The Press” says that a new study by Shell, BP and Todd Oil Services, Ltd, has revealed that the reserve of Kapuni natural gas is at least 84 per cent larger than the estimate on which deliveries of gas and their purchase by the corporation was based.

The Minister of Mines (Mr Gandar) said today that the parties had agreed to a gas purchase contract based on the new estimate of Kapuni reserves of 460,000,000 million British thermal units.

“The original estimate, for the purpose of the gas purchase contract, was 250,000,000 million B.T.U.s. This figure was substantially below the estimate of gas reserves made at that time bv Shell, BP and Todd Oil Services, Ltd. The new assessment, which had been endorsed by the consultants retained by the Natural Gas Corporation, effectively confirms their early estimate,” Mr Gandar said. DEVELOPMENT

The corporation’s consultants had originally suggested the lower figure be adopted for the gas purchase contract, and this represented an adequate foundation for the development of processing and distribution facilities to provide natural gas to Auckland, Hamilton, New Plymouth, Hawera, Wanganui, Palmerston North, Levin, Hutt Valley, and Wellington, for a minimum of 20 years. A far greater volume of natural gas now available meant that further development and exploitation could be considered. BIG USERS

In the past, potential customers seeking high-volume supplies of natural gas have had to be treated with caution, but the new information about Kapuni reserves will enable distributors to move more vigorously into this important section of the market, and to reap the financial benefits to be gained from volume sales. “The confirmation that more gas will be available from the Kapuni field will also allow planning to proceed for further development of the corporation’s processing and supply system,” said Mr Gandar.