No methanol decision yet

Press, 5 March 1980, Page 1

No methanol decision yet

PA Wellington The Government had reserved its decision on which cf the two proposed methanol projects to accept until detailed terms were finalised, said the Minister of Energy (Mr. Birch) last evening. But the Government had confirmed its intention that a “stand alone” methanol plant would be built in New Zealand.

Two firm proposals had been received after the Government’s announced allocation of Maui gas for methanol last Septembers One was from the BP-Challenge-Fletcher group and the other from Petrocorp and Alberta Gas and Each had been carefully considered and the economics, efficiency.

and over-all technical aspects of both projects had been fully analysed. “Our analysis shows clearly that either project would return considerable economic benefit to the nation and a firm decision has been made, therefore, to proceed with the development of a stand-alone methanol plant,” said Mr Birch. “The selection of the' project that is to go ahead will be made by the government at an early date following further negotiations Jto be undertaken with both proponent groups on a few outstanding commercial aspects of their proposals.” The methanol project was discussed by the Cabinet economic committee at its meeting yesterday.