‘Bright’ prospects for gas methanol

Press, 26 May 1979, Page 3

‘Bright’ prospects for gas methanol

PA Wellington A multi-- 'llion dollar, export-oriented petrochemical plant converting Maui gas to methanol could be built and working in New Zealand four years after the go-ahead is given, research details show. Reports that detailed investigations by the Government’s liquid fuels advisory body were showing “very might” prospects for a methanol export industry, were confirmed yesterday Dr Basil Walker, the executive officer of the Liquid Fuels Trust Board, said methanol was at present “figuring very large’’ in the board’s work. A feasibility study on the practical aspects of methanol production in New Zealand, including the best plant size, had been completed. He expected studies on the local and overseas market pot ntial for the product would be finished towards the end of July. Dr Walker said the board already had a fair idea of the methanol market situ-

ration through preliminary I 'reports from its consultants. ,|He confirmed that export prospects looked very! i bright. :■ The best market opportu-i 'inities appeared to be in the HSouth Pacific region, par-; i ticularly around South-East; I Asia. There were also possi- > . ! bilities of exporting to rhe; .United States, Japan, and! Australia. Dr Walker said the board jj hoped to present a comprehensive report on methlanol to the Government by J August. Methanol is a versatile I liquid product which can be ;used as a chemical feestock, !a solvent or as a fuel. Its ■production from natural gas is a relatively straightforward petrochemical process — less complex than I the ammonia-urea project J being undertaken by the (Government — and uses ; |well proven technology. An average-sized plant (producing 1500 tonnes of methanol a 'ay would cost . about 8100,000,000 to build. ■( The Liquid Fuels Trust ißoard was originally asked J to investigate the production (and use of methanol mainly I in its application as a trarisiport fuel substitute for imported oil. Methanol can be (used as a vehicle fuel either I in a blend with petrol or in I purer forms. However, the board, dur-1 ling its investigations, has|

I become increasingly aware . of the merits in pushing ahead with the methanol | scheme as an export-earner jfor the country. ■ | “If the methanol went : I ahead, it would probably be on the basis first of chemJica! methanol, rather than as (a fuel extender,” said Dr ■I Walker. 11 More work needed to be done on the fuel extender I option. “We may be asked ■ in August (by the Government) about the 15 per cent blend but 1 doubt that we will be in a position to give a definite answer,” he said. But Dr Walker said he , thought the Government . may have to make a lot of ; “decisions in principle” this year about liquid fuels. Methanol looked attractive! because it was an open-j ended option. It was _ al ■ “clever product” which could be used for a variety of purposes and a decision! . to build a plant would not! commit the country to a] particular path. A move could be made to; use most of the product fori a petrol blend or for export! or for other purposes, Dr] Walker said. It appears likely that if! the Government decides to] both export methanol in al big way and use it domestic-! ally as' a fuel extender, a| larger plant producing about; 12500 tonnes of methanol ai (day would be required.