Leading Article On Kapuni Gas Disputed

Press, Volume CV, Issue 31002, 7 March 1966, Page 20

Leading Article On Kapuni Gas Disputed

“An editorial in The Press’ on Friday gave a false impression of circumstances surrounding the Government’s attitude to the development of the Kapuni natural gas field," said Mr Matthew Kennedy, secretary of the Gas Association of New Zealand. Mr Kennedy said he disputed the editorial’s claim that the world-wide experience in exploiting natural gas fields fitted the oil consortium to decide what use of Kapuni gas would be of greatest benefit to New Zealand. “It must be remembered that the oil companies exploited their products for profit. “The editorial also claimed that the oil companies that own the Kapuni field could feel justifiably aggrieved if the Government excluded them from their discussions on the best use of the gas. But there was no suggestion that oil companies were being excluded by the Government which was in fact negotiating agreements with the oil companies and other interested parties at this time,” said Mr Kennedy. “The editorial commended the speed with which the British Government came to terms with an oil company for the development of offshore gas deposits, but on that occasion there was no dispute about use of the gas, and no recommendation from the oil company that be used for generating electricity. ‘This was the only area of disagreement in New Zealand over development of the Kapuni find. The oil companies want the gas used to generate electricity and the Government's independent inter-nationally-renowned consultants say it is in the interests of the economy and the consumer to use the gas as a premium fuel.”

Mr Kennedy said there was little doubt that the Government would find a workable solution to this problem and that the final decision on the use of the gas would be one which the Government believed most benefited New Zealand, and which at the same time provided a fair financial return to the oil consortium.