Shares in Petrometh

Press, 30 May 1981, Page 12

Shares in Petrometh

j PAWellington.r Discussions I are under way with 15 New Zealand companies to share out local ownership of the planned Petralgas chemical methanol plant in north Taranaki. The companies would buy shares in the Petrometh company planned by the Petralgas-parent, the Stateowned Petrocorp, to handle local ownership. A Petralgas official, Mr G. Swift, has said that the public would be able to buy into Petrometh. No date for discussions or

; decisions on share proporr tions sold to private compan- ; ies or the public had been : made, he said. I Costs of the projects were i under review. Last estimates in 1980 dollars priced the development at $l4O million, with net export earnings of $BO million expected annually. Petralgas is . 51 per cent owned by Petrocorp. The other share is held by a Canadian methanol manufacturer, Alberta Gas Chemi- ' cals. Mr Sw’ift said $3O million equity capital was required

to get the project moving. Alberta Gas was expected to provide 49 per cent. “The balance will be loans and credits from overseas," he said. Petralgas has placed orders overseas for plant and equipment. Improving the access roads to the Tikorangi site, 16km north of New Plymouth, should start in the next two months. Planning approvals for the project were announced in an Order-in-Council last Wednesday under National Development Act provisions.