§ 19. Mr. Gwilym Robertsasked the Minister of Power what investigations have been made into the feasibility of manufacturing ammonia and other chemicals from North Sea gas; and if he will make a statement.
§ Mr. MarshStudies by the chemical industry show that ammonia, alcohols 15 and acetylene could be made from North Sea gas if the processing plant were converted to use natural gas instead of naphtha.
§ Mr. RobertsIs my right hon. Friend aware that the Chemical Industries Association estimates that use of the gas could save £20 million a year on the import of naphtha and would expand considerably the export of ammonia products and fertilisers? Is he further aware that the full use of the gas for chemical purposes can take place only if it is available at less than 2d. a therm?
§ Mr. MarshI think that it would be 2d. a therm purely for acetylene. But, without going into prices too much, I have met the Chemical Industries Association and discussed this matter with it. There is no dispute about the need to get the full benefit. I understand that the Association had talks with officials yesterday.
§ Mr. Brian ParkynWould my right hon. Friend consider the possibility of having a two-price structure, depending on whether the gas is to be used for power production, as a fuel, or for chemical synthesis?
§ Mr. MarshDirect contracts can be entered into with the chemical industry. The important thing is to get the full benefit of North Sea gas. Clearly, we can do this only if the price at which it is sold is such that people are prepared to buy it.