Govt urged not to ignore NZ’s LPG assets

Govt urged not to ignore NZ’s LPG assets

The Government is being urged not to under-rate the strategic value of New Zealand ’s LPG resource.

Speaking at the LPG industry’s annual conference in Taupo today, Association president, Owen Poole, said LPG use in New Zealand provides as much ‘energy’ as the new 385MW ep3 development at Huntly.

“LPG is a strategic energy asset for New Zealand , but it is hugely under-valued by Government, despite its massive potential to contribute to a sustainable energy future for the country.”

Mr Poole was commenting after the release yesterday of the Government’s Sustainable Energy Framework discussion document.

The document suggests Government could consider supporting LPG as a cleaner, low carbon transport fuel that is good for high mileage vehicles, and that reduces environmental impacts.

“The LPG industry has been telling Government that for years, and we have proposed many times how we could work together to encourage greater use of automotive LPG.

“While it’s nice, finally, to be acknowledged, LPG’s contribution to New Zealand ’s energy future now goes far beyond just transport.

“LPG is rapidly becoming a sizeable, reliable and resilient energy supplier to the country’s residential, commercial and industrial sectors.”

Mr Poole said the LPG market has grown 50 percent in the last five years and this growth curve looks set to continue. Most growth is occurring in the residential and commercial markets.

He said LPG is already a major electricity displacement option and it could become increasingly important in the long term to the nation’s energy security, energy efficiency, climate change and local air quality strategies.

“The industry hopes Government will be quicker to appreciate LPG’s wider strategic role in sustainable energy policy development than it was to recognise its potential as a transport fuel.”

Mr Poole congratulated the Government on widening energy sector discussions away from a seemingly single focus on developing electricity and renewables initiatives.

“Putting all your eggs in the electricity and renewables basket does not make good business sense. It just tends to marginalise other potential solutions, like cleaner-burning LPG, that can contribute to the long term strategic mix.”

Mr Poole said the LPG industry is now keen to meet with officials to participate in the sustainable energy debate.

There are a range of options Government could consider for broadening use of LPG in the residential, commercial and industrial sectors – as well as transport – and Mr Poole said industry will be taking proposals along those lines to Government.

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