L.P.G. delays predicted

Press, 10 April 1980, Page 7

L.P.G. delays predicted

PA Wellington It would be some time before liquid petroleum gas (L.P.G.) will be available in large quantities through a strong distribution system, the Minister of Energy (Mr Birch) has said. “Fluctuations in the supply of L.P.G. will be with us for some time,” Mr Birch said last evening. He gave five reasons for this: i —The time needed to build a coastal tanker-dis-tribution network to over-: come chronic problems of i distribution to the South Is-1 land; | —The time needed to build bulk depots at major! ports, particularly in the | face of some environmental objections; j —The low rates of Maui' gas offtake for generation of electricity; —Some delays in the provision of railways’ 23-tonne tank cars; and

il —A market that wishes to (expand because L.P.G. is ■(priced attractively in relation to petrol. 1 1 “Even as we overcome ! | production shortages, therefore, distribution headaches ’■will continue until the coastal tanker bulk depot network is operational,” Mr Birch said. “Investigations are continuing into ways and means of ■ improving the 1981 supply 'to the South Island, the i worst affected part of the country, but we have no ;present assurance of success jin this exercise because no I interim developments can be | progressed unless it is clear i that they would be econ•lomically practicable and would conform to high standards of safety. “Anyone planning conversion to L.P.G. should obtain adequate assurances from a supplier about continuing availability of L.P.G. before undertaking the conversion,” Mr Birch said.