More Maui gas for electricity

Press, 18 February 1986, Page 1

More Maui gas for electricity

Wellington reporter The Government has opted to make a further allocation of Maui gas for electricity generation. The allocation would bring substantial benefits through enabling the full use of the New Plymouth and Marsden power stations, said the Minister of Energy, Mr Tizard, last evening. The Cabinet decided on electricity generation after a commercial tender for the gas was held and public submissions were received on a discussion paper setting out alternative gas uses. Mr Tizard said electricity was the best option on both commerical and environmental grounds. The allocation would also enable smaller-scale high value gas use options, such as ammonia and L.P.G. production, to be considered. The amount of gas to be allocated to electricity generation is between 30

and 40 petajoules, about double the amount now allocated for this purpose. Broad agreement existed between the Ministry of Energy and the D.S.I.R. that the further allocation of gas for electricity would not greatly affect the ultimate depletion of the Maui field, Mr Tizard said. Even if the size of the gas reserve did turn out to be smaller than the present lowest estimate, the allocation would not make a difference, he said. The departments were working to define better the amount of gas left in the ground. Mr Tizard said reticulation would continue to have the highest priority among gas users. “Plenty of gas is available for further growth in the reticulation sector, and allowance has been made in planning for reticulated gas demand to double within the next two decades,” Mr Tizard said.