Gas-for-power study

Press, 21 April 1979, Page 7

Gas-for-power study

PA Whangarei 1 The Minister of Energy J (Mr Birch) has ordered an ! investigation into converting the Marsden A and B power stations to I natural gas. The move follows an approach from the member of Parliament for Kaipara (Mr P. ,1. Wilkinson) who has championed the conversion to cut oil imports and help boost Northland’s economy. Mr Wilkinson said the conversion itself would create work Northlanders and theVrexistence of a pipeline carrying the gas would strengthen Northland’s hand for regional development.

“As the price of imported oil continues to go up. areas near to a nat-ural-gas pipeline will be at an increasing advantage as far as regional development is concerned,” he said. A switch to Maui gas would put the Marsden stations in a much more competitive position against power stations using fuels. During his discussion with Mr Birch he had said that a conversion and the building of a pipeline would be one practical way of providing further employment for the work force now building Marsden B pending a decision on the planned expansion

of the oil refinery. The SI2OM B station is now scheduled for mothballing and its sister station is likely to be used only in case of a power shortfall from 1982 on. As a consequence, 150 permanent staff at Marsden A and about 300 construction staff at Marsden B are wondering what will happen to them. A conversion to natural gas is technically possible and the New Zealand Refining Company has said that it has no objection to the change. Mr Wilkinson said a conversion to gas would cut fuel costs at the stations to about a quarter of residual oil.