Extended gas pipeline sought

Press, 29 December 1980, Page 6

Extended gas pipeline sought

PA Wellington Gas authorities are urging the Government to accelerate plans for the extension of the natural gas pipeline throughout the North Island. The authorities also say the State-owned Natural Gas Corporation should keep out of gas retailing and concentrate on wholesaling. The Gas Association’s president, Mr A. Veart, said yesterday that rising oil prices required increased reticulation of natural gas. “Already overseas experts are talking about a cost increase in oil up to $4O a barrel in the immediate future and about $5O a barrel not too far away,” Mr -Veart said.,;

“This fact alone should act as an incentive to the Government to ' introduce some equity capital in addition to loans to enable work to start immediately.” He said $l2O million was needed to take natural gas to Hawke’s Bay, Bay of Plenty, Northland, Taupo, Rotorua, and the Waikato. ’ Mr Veart also said the Natural Gas Corporation should keep out of retailing and “remain as a _ transmission operation as it, was originally/intended.” He said the accelerated reticulation programme could be done effectively only by the corporation concentrating on wholesaling.