HC Deb 14 May 1959 vol 605 cc187-8W
Mr. Robens

asked the Paymaster-General (1) if he will state the total expenditure to date on the research and experimental work, including the tanker and installations, on liquid methane;

(2) what sums, under Section 42 (1) of the Gas Act, he has authorised the Gas Council to borrow for the purpose of their arrangements with an American company in connection with the liquid methane experiment.

Sir I. Horobin

The Gas Industry's share of the expenditure to date so far amounts to rather under £1½ million mainly on the tanker and onshore installations in this country, both of which will have a considerable residual value, even if the experiment does not warrant further development. Account was taken of this investment in my noble Friend's general consent to borrowings by the Gas Council.

Mr. Robens

asked the Paymaster-General whether he will require the company or association formed by the Gas Council and/or Gas Boards and the American company to ask the consent of the Minister of Power for capital expenditure on tanker building.

Sir I. Horobin

Investment by the Gas Council in the joint company which owns the experimental liquid methane tanker is subject to my noble Friend's approval and has so far been limited to the requirements of the experiment. He does not intend to consider any application to increase their investment until he has received a full technical and economic assessment of the results of the trial shipments.

Mr. Robens

asked the Paymaster-General what is the average cost of gas per therm manufactured from coal, the average cost of gas per them manufactured from oil and the average cost of gas per therm manufactured from liquefied methane.

Sir I. Horobin

The cost of producing town gas varies very widely according to circumstances of production and demand but the average cost of production from coal and oil respectively in the London area is roughly 16d. and 14d. per therm. No assessment is yet possible of the cost of producing town gas from liquid methane.