Canterbury firms are hoping for work

Press, 30 December 1982, Page 1

Canterbury firms are hoping for work

Work on the $2O million Lyttelton to Woolston L.P.G. pipeline and associated storage facilities is expected to begin early next year if the Minister of Energy, Mr Birch, approves the Liquigas proposal soon. Canterbury engineering manufacturers hope that some of the $2O million worth of work will come their way at a time when forward orders are on the sparse side. The general manager of Liquigas, Mr F. J. A. Easther,-said from Wellington yesterday that tenders would be invited for the work. He envisaged that it would comprise several tenders. Whether the laying of the pipeline from the oil wharf to the depot to be built

at Woolston would be done by one contractor would depend on the responses Liquigas got from tenderers. The director of the Canterbury Manufacturers’ Association, Mr I. D. Howell, said that the recommendation for the approval of the pipeline was a positive step which would give industry confidence for the future and, it was hoped, provide a substantial amount of installation work for Canterbury engineering companies. Mr Howell said that the installation work would come at a time when Canterbury engineering companies were looking for forward work. Some big companies had only limited work from next April or May. The project could help

Canterbury’s unemployment problem at a time when it was expected to be at its highest level. Mr Howell said that limited L.P.G. was available in Canterbury but it was extremely expensive. With the pipeline installed, the Government had undertaken that L.P.G. would be available in Christchurch at North Island prices. “This is essential as at present an Auckland company manufacturing a product pays only $6.57 for his energy content (natural gas) whereas the Christchurch manufacturer pays $25 to $2B for the same amount of energy in the form of L.P.G.”

“While the national price for L.P.G. will still be higher than for natural gas, industry looks forward to a substantial reduction in costs,” said Mr Howell. Mr Howell said that he was confident other industries would make use of L.P.G. for new types of production. He expected Christchurch to use about half the L.P.G. shipped to the South Island.

The chairman of the Lyttelton Harbour Board, Captain A. R. Champion,, said that the board was pleased with the findings and recommendations of the Commission of Inquiry. The board was pleased that the oil wharf had been found to be safe and suitable for berthing

L.P.G. tankers. A contract for the building of the L.P.G. tanker was signed last July. It is being built in Scotland and is expected to be completed by the middle of next year. Mr Easther said it had not yet been named. It will cost Liquagas about $l6 million and will be run by the Shipping Corporation for Liquigas. The Lyttelton Borough councillor who presented the council’s submissions to the commission, Cr Mary Cretney, said that.when the council received the report it would study it carefully. The council had opposed the Liquigas plan. . A spokesman for the Cass Bay Resident’s- Association, Mr H. M. Hobden, said that the commission’s finding was much as expected. The

association had been concerned about safety and the impact on the environment. Mr: Hobden said that some disruption was expected when the submarine pipeline was being installed in Cass Bay, and some moorings might have to be removed. Mr J. D. Bundy, a Lyttelton real estate agent who owns land at Rapaki Point where part of the pipeline will run, had intended to subdivide the property. He said he' .would be “radically affected.” ■ Mr Easther said that Li3uigas had gone to a great eal of trouble to ensure the route was the most practical in every respect, including safety and minimum impact on the natural beauty of the area. Rocky outcrops on the Port Hills had been avoided wherever possible.