Buoyant CNG, LPG sales by Welgas

Press, 10 July 1985, Page 35

Buoyant CNG, LPG sales by Welgas

Demolition work on the old Christchurch Gasworks site in Moorhouse Avenue has been completed, says the chairman of Welgas Holdings, Ltd, Mr T. J. N. Beyer, in his review with the group’s annual account for the year ended March 31. Based on the proposed end uses in the development plans of prospective buyers, Welgas obtained expert advice on the scope of work necessary to achieve a responsible environmental clean-up of the site, Mr Beyer said. When this work is complete, the property will be sold, he said. Christchurch Gas, Ltd, had continued the development of the LPG Centre property. Notwithstanding periodic difficulties in the supply of

both ammonia and LPG, and healthy competition in the retail LPG market, the company achieved a 64 per cent increase in revenue. Referring to the North Island consumption of compressed natural gas, Mr Beyer says that continued support from the Government is necessary if the savings from the CNG conversion programme are to be achieved. Its success, with nearly 90,000 vehicles using this transport fuel at March 31, has been due to the active and committed partnership between the Government and all sectors of the CNG industry. Noting the present and projected financial benefits of the programme to the national economy, he says: • As a North Island trans-

port fuel CNG has to date saved S74M in foreign exchange. © Over the next five years these savings are projected to increase to SSSIM. @ The programme has generated employment and investment opportunities of some SBOM. “If we are to maintain the success and achieve the projected savings, then it is important that neither partner lessens its commitment or reneges on promises already made,” says Mr Beyer. Conversions to CNG and LPG accelerated sharply in the second half of the year with devaluation, two petrol price increases and the continuation of incentive and promotional programmes. The mild winter had an adverse effect on sales of natural gas, with Wellington Gas Company sales increasing only 0.7 per cent. Sales of gas for CNG transport fuel, however, had a volume growth of 51 per cent. A total of ?3.6M was spent on the Wellington gas distribution system. As the largest supplier of gaseous fuel automotive equipment, the subsidiary Dual Fuel Systems, Ltd, achieved a 38 per cent increase in revenue.