New campaign to have gas pipeline

Press, 6 November 1978, Page 5

New campaign to have gas pipeline

NZPA Wellington i South Island gas suppliers I have launched a new eam- | paign for a natural gas pipe-i I line across Cook Strait. In spite of the Government’s rejection of the pro- ) posal which it says would be ‘a “wasteful exercise,” the Gsfs Association has decided |to filly support in the ■ South Island for further ■feasibility studies. The Government has cal- ; culated that piping Maui gas to the South Island : would lose the country about SIOOM over all on 1977 lvalues. But the Gas Association says that no research has I been made into the value ofa pipeline in terms of national development. I “An exercise solely costed ion the gas supply situation i and supply to the South , Island in isolation is not I sufficient,” said the association’s president (Mr W. . Whitney).

“Had this been the basis of the study for the development of the Kapuni field, the North Island would not today be enjoying the benefits of natural gas.”. Mr Whitney said the value of the pipeline should be investigated “in the national context.” “A South Island pipeline could, for example, have a

i significant effect on the I volume of oil imports used for heating. The South Island has a relatively cool : climate and gas sales could , be considerable, even related to a fairly small population,” he said. “The effect of much needed natural gas in the Regional Development Area ■ of the South Island should also be fully explored“If natural gas distribution was arranged at a uni- [ form price throughout New Zealand similar to oil and i electricity, the necessary i price for North Island areas ■ would not be high, and : I would be easily offset by the ■ I Government’s withdrawing jits energy levy which acts only as a deterrent to the I, full expansion of natural gas sales” Mr Whitney said South L Island gas suppliers had been encouraged by the | Government’s recent decision ito increase financial assist-

. i ance to the manufactured gas . ; from the Maui field and . would be supplied nation- ■ i wide at a uniform price. • But he emphasised that : they were still anxious that an extensive study be made Jef the feasibility of a pipeI line. ! “The Government should • be interested and willing to do this,” he said.