Plant first in growth strategy programme

Press, 13 December 1982, Page 37

Plant first in growth strategy programme

Th' 1 ammonia-urea plant of the Petrochemical Corporation of New Zealand. Ltd. was significant because it was the first natural-gas-based project in the growth strategy programme to be completed, said the Prime Minister. Mr Muldoon, when he opened the plant on Saturday. Some might see the energy programme as separate from the rest of the economy, but it was far from that. The ammonia-urea plant had natural gas being turned into a vital ingredient for primary industry, he said. Urea was a new source of indigenous fertiliser which would make New Zealand less dependent on imports and although the bulk of production from it would be exported for quite some time, supplies would eventually become available domestically. This was significant to horticulture - a burgeoning industry — and to some degree dairying, to boost pasture growth, he said. To the extent urea was exported, it was complementing exports from the primary sector. Around 34 per cent of the cost of the plant represents payments to New Zealand companies and. in particular.

to Taranaki firms. When in full production, the plant will provide in the course of a year more than $3O million in overseas earnings or import saving — a most satisfactory return to the country on the investment. When the Motunui synthetic plant was completed, the dependence on imported fuel would be lessened. That project was about 7 per cent completed and within budget. World-wide commitments so far totalled $456 million, of which $lB5 million had been spent. New Zealand's commitment was $142 million. Mr Muldoon said. The third Taranaki project was for methanol and was within its construction budget. The total estimated cost was $240 million, the project was 27 per cent complete. Commitments up to now totalled $193 million, of which $63 million would be New Zealand supplied. So far. $133 million had been spent, of which $2B million had gone to New Zealand firms. The plant would use about 4.5 petajoules of natural gas in a full production year and would provide condensate to substitute for imported refinery feedstock of up to $11.3 million in value for that

period. "I am told the petralgas methanol plant will use around four times this amount of gas and produce four times as much condensate — a saving well above $4O million a year in overseas funds." The completion of this am-monia-urea plant and the export contracts won by petrochem were further proofs that the Government's decision to set up the Petrocorp group was sound. Critics had carried out a "concerted campaign" to mislead the public into believing the growth policy referred only to the major projects — that we were not concerned with developing industries such as farming, forestry. manufacturing, tourism, fishing, and small business ventures. Mr Muldoon said. "Our growth strategy covers all of these industries and we are continuously encouraging every possible productive interest." The energy-based projects could and would make a great contribution to the economy. They would become another arm of New Zealand's productive activity — alongside meat. wool, dairy, forest, manufacturing, and fishing industries.