Industrial Application of Natural Gas

Natural gas was introduced to the Melbourne reticulation system in April 1969 and since that date sales to industrial consumers in the Gas & Fuel Corporation of Victoria area of supply, have increased by over 50% This increase has occurred despite the fact that the areas in which the new fuel is available have been dependent on the progress of the conversion operation from manufactured gas. The half way mark for conversion was reached in May 1970. The reason for the adoption of natural gas by industrial users is usually the result of objective financial analysis leading to the conclusion that the new fuel will give the lowest overall production cost. Many factors are involved in such an analysis of which the price of the fuel is only one. Amongst other important elements in the cost calculation are:- -ò òò -(1) The effect of fuel on product quality (2) Maintenance and handling costs for alternative fuel. In addition to economic gains for the individual user, the use of natural gas should benefit the whole community through its effect on such things as, air pollution and overseas balance of payments.