S.I. gas industry to ask Govt for help

Press, 22 February 1978, Page 2

S.I. gas industry to ask Govt for help

Concern for the plight ofi the South Island gas industry was the theme of the Gas Association’s annual meeting in the Christchurch Town Hall yesterday. The meeting resolved to ask the Government to use the energy resources levy solely for the energy industry, and in particular to help the manufactured gas industry in the South Island

Delegates also argued strongly for a national price for gas. and expressed dissatisfaction with the an-1 nouncement on Monday that Maui gas would not be, piped to the South Island. "The main problem facing our industry is the price of gas," said Mr J. B. Seddon,, chairman of the Hutt Valley Electric-Power and Gas Board. "The capital cost of installing gas is high. I estimate that it would take 30 years for some homes to recover the cost of installing

Mr Seddon asked whether; the newly formed Liquefied Petroleum Gas Association! would have the expertise to question Government deci-!

“Take the pipeline; the Minister of Energy Resources fMr Gair) has nad his experts working on this, and they have decided that it is not economically feasible. We should have our

own experts and be able ro refute that," Mr Seddon said. Mr Seddon’s proposal for a standard price for gas won jthe approval of many delegates. Mr A. Veart, general manager of the Auckland Gas Company, said that the questiqn of standardising gas prices should be decided this year. i Unless there was a change pt attitude among South Islanders, the chance of a pipepine from the Maui field was remote, said Mr E. L. Mann, a sales engineer of [Raychem, Ltd. i “My impression as an outsider is that the oublic of the South Island could not care two hoots whether the i manufactured gas industry went up in a puff of smoke” |he said. But Mr Mann asked the I executive if there was any

'chance of a manufactured gas industry based on coal, with its proven reserves. He also suggested that experiments be made in the transport system with L.P.G. "Either the gas industry

| or the oil industry will supply L.P.G. to the transport sector. Unless the gas industry' starts now, it will be left out." The chairman of the meeting (Mr W. E. Whitney) replied that coal plants had difficulties with supply of coal and spare parts. He esti-

mated that the coal-based plant in Dunedin would last only another 10 years. He said that the industry was more interested in heating fuels than in transport. The South Island’s energyproblem was also the subject of comments made by Mr G. Serrallach. deputychairman of the Palmerston North City Corporation’s energy committee. Mr Serrallach said it was a pity that Dr N. J. Peet’s paper on the Christchurch Gas Company had been withdrawn, as it would have emphasised the plight of the South Island gas industry. Dr Peet’s paper was withdrawn by the organisers last month because they believed it would have embarrassed the host company to the conference. There were hidden advan-

tages in piping Maui gas to the South Island, said Mr Serrallach. “What is the cost of Christchurch smog, compared with the SIOOM cost of laying a pipeline.” However Mr Serrallach told the meeting that the gas industry had the brightest possible future, even when conventional forms of energy had been depleted. Biogas could be produced from sewage, organic rubbish, and forests to fulfil all the energy needs of New Zealand.