OIL FERTILISER MAUI PRIORITY

Press, Volume CXV, Issue 33963, 2 October 1975, Page 1

OIL FERTILISER MAUI PRIORITY

(From

CEDRIC MENTIPLAY)

WELLINGTON, October 1.

The production of nitrogenous fertiliser from Maui gas has taken first priority after a report to the Minister of Trade and Industry (Mr Freer) by the officials committee’ investigating the type of petrochemical industry best suited to New Zealand’s requirements.

Also of high priority is the manufacture of methanol, used as an additive to petrol and in other ways to raise the octane ratings of fuels. Methanol is imported in significant quantities at present for use with various grades of petrol. The committee still has to report on the best use of Maui gas, whether as a heat source for electricity generation, for domestic heating, or for producing petrochemicals. Points highlighted in the committee’s report included the scope for co-operation with Australia in petrochemical development. The benefits of domesticmarket base support for methanol or nitrogenousfertiliser manufacture and the substantial export market dependence of world scale manufacture on olefine-based products, are emphasised. “The economic impact of such an industry in New Zealand would be far bigger than most people realise,” Mr Freer said. s6sm to sBoom The report’s broad estimates of capital costs range from about s6sm to about sBoom, for a large installation capable of producing a net benefit to the balance of pay. ments of close to s9om a year if overseas markets could be secured. Such an industry might have considerable effect on regional development and substantial spin-off benefit for other industries. Investigations have yet to be completed on a number of vital issues, but the committee’s interim report had narrowed the options for consideration. “I expect the final report on this preliminary feasibility stage to be completed in March next year,” Mr Freer said.

The oil industry had built up stocks within the country and obtained cargoes of crude oil before today, consistent with the refining capacity of Marsden Point, a spokesman for the Shell Company told the Press Association. He had been asked to comment on a remark by the

Minister of Finance (Mr Tizard) in Parliament last night, “We have filled every available storage tank at the old price, and this had given us a cushion to reconsider when we know the opposition.” The Organisation of Petroleum Exporting Countries ended its ninemonth price freeze today with a 10 per cent price rise. The spokesman said that, for example. Shell obtained a cargo of 70,000 tons of crude oil from Kuwait on September 28, thereby beating the O.P.E.C. deadline by two days. Prospecting licences The Government from today would accept and process new applications for petroleum-prospecting licences, said the Minister of Mines (Mr Colman). The Petroleum Amendment Act, 1975, had come into force, effectively lifting a freeze on processing applications for new areas which had been in effect for almost four years, Mr Colman said. Advertisements calling for licences to prospect in Taranaki would be published in international oil magazines soon.