Mobil unveils plan to ease fuel crisis

Press, 2 July 1979, Page 2

Mobil unveils plan to ease fuel crisis

PA Wellington Mobil OU N.Z., Ltd, has unveiled proposals for a big joint venture with the Government to convert huge quantities of Maui natural gas to high-octane petrol. Mr P. W. Marriott, managing director of Mobil, said that the first stage would be to determine the best size and site for the proposed plant, as well as financing and other important matters. He said that about 50 per cent of New Zealand’s petrol requirements by 1984 probably could be met from the MobU process using Maui natural gas. The joint venture would be based on a process using a special catalyst developed by Mobil, which was being used at present for other purposes connected with several commercial processes in countries throughout the world, including Canada, Japan, the Netherlands, Italy and the United States. Mr Marriott said that New Zealand’s unique circumstances made the project particularly attractive: it imported huge quantities of liquid fuels and was a long way from world crude oil sources. Thus, at present, it was vulnerable to supply interruptions, and its trading deficit was a severe strain on the economy. “Considering these factors,” he said, "and recognising that New Zealand now enjoys a surplus of

natural ga.>. the Mobil pro-’ cess appears particularly] s timely." ’ Mr Marriott said that Mo-i - bit’s process would convert] eNew Zealand’s natural gas 11 into more readily usable form by manufacturing .’petrol. Expensive conver■j sions of cars and other

vehicles, or duplication of! •'storage and supply facilities,] would not be necessary, as] ;1 they would be for the meth-| 11 anol blending alternative. ] About 50 per cent of New! Zealand’s present daily: :*petrol requirements could be] i met well within the natural ] gas capability of the Maui A | ■ platform. Mobil began development lion its process several years] !ago, Mr Marriott said.

“However, until now, the [justification to build a commercial plant has not existed i because petrol produced i from natural gas would have ! been much more expensive : than imported products. But ; crude prices are rising jrapidly and supply is becoming much less secure, so the ] position has reversed drami atically. ! “Mobil believes it will be ' able to produce petrol from I surplus natural gas at a sub- ! stantial saving in foreign exchange and at a price to ' the consumer no more ex- ! pensive than he pays at present. As the price of imported fuel increases, the Mobil process becomes proportionately more attractive,” Mr Marriott said. The process had other potential advantages to New Zealand and other consuming nations, in that it could be used in the conversion of methanol from coal, or ethanol from biomass into high octane low-lead petrol, he said. “I was pleased that the Minister of Energy (Mt ! Birch) and the secretary for | energy (Mr W. M. Duncan) i were able to meet Mobil j executives and technologists I during their recent visit to ! the United States,” said Mr I Marriott. “After that meeti ing and the submission of lour proposal, I hope that we [will form a joint venture I which will make New ZeaI land less dependent on exiternal energy supplies.”