NEW ZEALAND

New Methanex NZ boss speaks out

Methanex New Zealand boss Harvey Weake has castigated his government, saying it has not done enou...

Weake, the former technical director, came out fighting yesterday after his appointment as managing director of Methanex New Zealand, effectively replacing former Asia-Pacific boss Bruce Aitken who is now chief operating officer of the global methanol manufacturer.

Weake told EnergyReview.Net that his first priority would be to ensure that Methanex had enough gas to continue running at least one of the three Taranaki methanol trains.

"We are active on a number of fronts to secure gas for 2004, there are several things going on right now, that is my first priority.

"Beyond that, I will be doing all I can to ensure the gas industry here is a sustainable one, and that's going to take quite some effort."

Weake said that Methanex was a very important part of the energy scene, this country's eighth largest exporter and providing that crucial base load that gas sellers liked.

He castigated the government for being too slow assessing the possible huge implications in the wind-down of the Maui field, which had dominated the gas supply market for over 20 years.

"There will be no sacred cows, I am suggesting we do whatever it takes to make it happen, convincing the government of the urgency of the situation."

He said the government could consider a lower royalty rate for gas than for oil, or even get directly involved in the industry as it did through Petrocorp in the 1970s and 80s.

"I would hate New Zealand to return to the position of thirty years ago, where there was only a small gas market and little infrastructure. "

The Pohokura gas field, though vital, was only part of the solution to New Zealand's energy problems, he said.

The government today released figures which showed existing developed gas reserves would be extinguished in a little over six years and that the development of Pohokura and other smaller fields would only push that deadline out to about 2013.

"The stakes are very high and, if we are forced to close our Taranaki plants, the whole thing then cascades."

He added it was possible to manufacture methanol from coal, as was being done in China. Coal, although abundant in New Zealand, was not as environmentally friendly as gas and that process of making methanol was also a more expensive.

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