Encouraging LP Gas is best strategic option

News release 16 June 2004

Encouraging LP Gas is best strategic option

Rockgas applauds the Government’s stance in supporting exploration for gas and oil with a programme of subsidies. Rockgas does not however support the Gas Association’s request that Government should incentivise the expansion of the natural gas reticulation network. General manager of Rockgas, Owen Poole, said Government would be better advised to encourage the direct use of LP Gas which requires no subsidies.

Encouraging greater use of LP Gas will generate significant economic, energy security and environmental benefits without unnecessary investment in costly infrastructure.

He said the benefits to the country and to consumers would be the same, but there would be no need to invest massive funding to develop expensive reticulation networks.

“In terms of today’s commercially-available energy supply options, LP Gas is an ‘almost unique’ distributed fuel which maximizes energy efficiency,” Mr Poole said.

“It is clean burning, easily transportable to point-of-use, hugely versatile, cost-effective and in plentiful supply.

“Nor does it require massive investment in infrastructure and reticulation systems to make it more accessible to all New Zealanders. It is already nationally-available and consumers are not faced with line charges.

“Economically and strategically, incentivising greater use of LP Gas offers significant positive outcomes for consumers and the country for very little additional cost.”

Greater use of LP Gas would help to relieve the burden on the country’s struggling electricity system, both nationally and strategically in localized at-risk areas such as the upper South Island. .

It will also provide energy efficiency gains and provide consumers with additional energy choices that are consistent with good environmental outcomes.

The New Zealand LP Gas market has grown nearly 50 percent in the last five years, underlining the fuel’s popularity and accessibility. The biggest growth area is in the domestic and light commercial sectors.

ENDS

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