Petrocorp decision soon

Press, 24 October 1984, Page 29

Petrocorp decision soon

PA New Plymouth Petrocorp’s decision on stage two energy developments in Taranaki could be made in the next six months, the board chairman, Mr Frank Orr, said yesterday. The decision to build a gas stripping plant without help from its Gas Liquids Investigating Co (Glico) partners, Shell BP and Todd, would depend on independent market surveys, he said. Glico was unable to agree on the overseas demand for the products and last month decided against stage

two. Mr Orr and Petrocorp’s general manager, Mr Jim Hogg, said the market was still being assessed. The $1.5 billion plant would be five years away and market predictions were difficult to make from that , distance, Mr Orr said. Differences between Petrocorp and the other Glico partners had not appeared until the meeting to consider the final report.

The Petrocorp directors’ sixth annual Taranaki visit this week gave them the chance to see the projects,

meet the staff and the community, and attend board meetings on the specific sites.

Mr Orr said Petrocorp divisions were operating at a profit. Both the ammoniaurea plant at Kapuni and the methanol producing petralgas plant at Waitara, were improving their situation every day. The price of ammonia-urea was improving and would hold its present level for some time, he said.

Devaluation had helped the price of methanol on the world market. Petralgas was in profit after only 12

months operation. The McKee production station near Tikorangi was in its final commissioning stage and oil could flow by the end of the month, he said.

From November 1 the field will earn $lO million per month, pumping between 3000 and 4000 barrels per day. Flow testing at the Toe Toe-1 well was about to begin.

The board was still confident of its potential and there could be news by the end of the week, said Mr Hogg.