2020 Report from the Executive - Gas Association of New Zealand

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2020 Report from the Executive - Gas Association of New Zealand
2020
Report from the Executive
2020 Report from the Executive - Gas Association of New Zealand
THE A SS O CIATI O N
                       The LPG Association of New Zealand (Inc) represents companies from all sectors of the
                       industry, from LPG production, distribution, wholesaling and retailing, to equipment
                       supply, installation and servicing. The Association was established in 1975.

                       Membership represents all aspects of LPG fuel and appliance supply to the New Zealand market.

                       M i s s i o n St a t e m e n t
                       The LPG Association of New Zealand exists to serve the interests of its members. It promotes the
                       safe and increased use of LPG. In doing so it works to secure a favourable environment for the
                       production, marketing and distribution of LPG. In addition, it serves as the principal voice of the
                       LPG industry to Government and the community.

                       To achieve these goals the Association will:

                           ●    Advocate for the use of LPG with government agencies, the public and relevant
                                   stakeholders

        “
       Level 12,
                                  ●
                                      ●
                                       Promote safety within the LPG industry and the community
                                           Anticipate and respond to the challenges and opportunities which confront
 Davis Langdon House                        our industry and members

  49 Boulcott Street                      ●    Achieve favourable governmental actions on LPG issues

      Wellington                           ●   Provide forums for communication within the industry.

PO Box 1776 Wellington
         6140
                                           Directory
    tel: 04 914 1765                       LPG Association of New Zealand (Inc)

email: info@lpga.org.nz                   Executive Director and Secretary: Peter Gilbert
web: www.gasnz.org.nz                 Auditors: Moore Markhams Wellington Audit

        ”                          Solicitors: Quigg Partners

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2020 Report from the Executive - Gas Association of New Zealand
PRESIDENT’S
    & EXECUTIVE
     DIREC TOR’S
       REPORTS

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2020 Report from the Executive - Gas Association of New Zealand
PRESIDENT’S REPORT

A challenging year brings some positives
Our Executive Director’s report sums up the year nicely. It was definitely an incredibly
challenging year, for all New Zealanders including many of our members.

Covid-19 had a very material impact at a sales level, contributing to a 3.2 per cent reduction in
total consumption as businesses closed during lock down or, sadly, have not been able to trade
their way through this difficult period.

Acknowledging this, the LPGA Executive provided its members with a 20 per cent discount on
their subscription fees this year as we sought to provide as much tangible support to our valuable
members as possible.

But, while the year has been challenging, it’s also brought some positives.

Our people were front line workers during the Covid lock down and they brought a special
commitment and determination to their roles.

During lock down our people went out and delivered gas with very much, a business as usual
mindset, ensuring homes stayed warm and businesses had access to LPG to remain productive.

In order to do that we worked closely with WorkSafe New Zealand to ensure safety was maintained
and that we were able to keep delivering LPG even if compliance certification had lapsed during
Covid lockdown.

There’s also another positive at an appliance level, where we continue to see strong demand with
a 5 per cent sales increase to March 2020 for hot water heaters (fantastic news), plus we have had
over 1.2 million views of the Gas in a net zero carbon world, video.

This promotional, public-facing video explains the benefits of gas and why it’s an important
transition fuel to a greener economy. It’s very pleasing that so many people have taken the time to
watch it – it shows that gas is very much on consumers’ radar.

Still on the Covid-19 theme, we decided not to hold an annual conference this year. We made this
decision after careful thought; we understand industry enjoys coming together for the Forum and
finds it valuable, but we felt the Covid-related risks were too great. We are however arranging a
four-presentation webinar leading into our virtual AGM in November this year.

Now that our team of five million has got Covid-19 under some sort of control we are, very
pleasingly, starting to see sales volumes bouncing back. It’s particularly satisfying to see the
Residential/SME segment up almost 5 per cent on year to date figures compared to 2019.

Lastly, many of you may have heard that the LPG Association’s long-serving Executive Director,
Peter Gilbert, is retiring from the role in the first half of next year.

Peter has had a demonstrable impact on the New Zealand LPG industry over the past 30 years,
serving the Association and our members tirelessly and, more recently, providing secretariat and
representational services to the Gas Association.

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2020 Report from the Executive - Gas Association of New Zealand
He will be sorely missed by both LPGA and GANZ members, and by the numerous officials and
industry stakeholders he has dealt with over the years.

We will see him off properly next year in a manner befitting his service record, but a key focus for
the Executive in the meantime is finding someone to fill the large shoes that he leaves.

As we wind down into Christmas, I wish you and your families a great break, and I’m sure I speak
on everyone’s behalf when I say I am looking forward to a positive 2021!

Cameron Jardine
president

                                                                                Cameron Jardine

                                 LPG Association of New Zealand (Inc)

                                                  5
2020 Report from the Executive - Gas Association of New Zealand
EXECUTIVE DIREC TOR’S REPORT

A funny old year!
Well, 2020’s been one out of the box for the Association. And we’ve spent most of the year
in ‘urgent response mode’, dealing with a raft of technical projects and workstreams that
have come out of various government agencies.

The focus this year on so much technical work has meant we haven’t had much breathing space
to carry out the usual government relations work we would normally do with politicians. But
while we haven’t been advocating at the Beehive, we have been very busy doing it around the
Wellington Beltway.

As you will see in this report, our year has involved considerable contact and close liaison with no
fewer than nine government agencies and sector NGOs. And it’s seen us get involved in 10 major
issues, all of which have required detailed input from the Association.

While this work has been very important on behalf of industry, it’s been time consuming and
sometimes a little frustrating trying to ensure officials take a balanced view of the issues and are
receptive to our views.

There have also been a range of other regulatory complexities that have been tricky to get
resolved satisfactorily. For some we only have temporary fixes in place while we continue to seek
more appropriate, longer-term outcomes.

By and large, most of this work has involved me working very closely with both the Executive
and Technical Committees, the members of which have worked extremely hard to provide the
feedback and information necessary to produce the many submissions and consultation responses
the Association has been required to make. I thank you all for your efforts.

A key workstream for us this year has been our role in ensuring both LPG and natural gas are not
marginalised by officials and other influencers intent on moving us all to a net zero carbon future.
This is work we have continued to do in conjunction with the Gas Association.

Despite the Government noting the important role gas has to play in this picture it’s been difficult
to get past the prevalent mindset of many policymakers that it’s necessary to eliminate the use of
all fossil fuels. Countering this mindset is proving difficult but it remains necessary.

As many members will know, as part of positioning gas as greener we launched a very successful
consumer-focused digital marketing campaign that we talk about more in this report, and we have
undertaken a novel study into the potential for producing renewable LPG.

Another sizeable piece of work has centred on the hazardous substances regulations and the issue
of appropriate separation distances. These issues affected hundreds of sites and, unless resolved
satisfactorily, could have led to those hundreds of sites closing down. While we do now have a
temporary solution in place it’s far from ideal.

We also had a very successful and well-attended Forum which Energy Minister Hon Dr Megan
Woods opened, which was a bit of a coup.

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2020 Report from the Executive - Gas Association of New Zealand
And, of course, we had Covid-19 … which nicely compounded many of the other regulatory
issues we were already dealing with, and made life just that little bit more complex, as it did for
everyone.

So, all in all, it’s been a funny old year. A few work-arounds, some work-ons and a little bit of make-
work courtesy of our friends in Government.

Roll on 2021!

Peter Gilbert
executive director

                                                                                    Peter Gilbert

                                  LPG Association of New Zealand (Inc)

                                                   7
2020 Report from the Executive - Gas Association of New Zealand
20 20
ANNUAL
REPORT

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2020 Report from the Executive - Gas Association of New Zealand
ADVOCAC Y
Our advocacy efforts are not confined to the industry’s response to the net zero carbon challenge,
but also include work in the areas of regulation, Standards, industry codes and guides. All of these
have the potential to influence industry operations and are therefore an important component of
the Association’s goals.

To influence the above, we continued our close liaison during the year with the following
stakeholders:

● WorkSafe New Zealand

● Environmental Protection Authority (EPA)

● Energy Safety

● Plumbers, Gasfitters and Drainlayers (PG&D) Board

● Ministry of Business, Innovation and Employment (MBIE)

● Standards NZ

● Ministry for the Environment

                                                                                                            “
● Ministry of Transport

● Green Building Council.                                                                              The importance

Issues we covered with the above stakeholders included:                                                of reinforcing the

● Health and Safety at Work (Hazard Substances) Regulations                                        valuable role of “Gas”
                                                                                                     in the move towards
● Pandemic response
                                                                                                     net zero carbon is as
● Hazard Substances and New Organisms (HSNO) Regulations for
  non-workplaces                                                                                        crucial as ever

● The upcoming review of the HS regime

● LPG in district plans
                                                                                                            ”
● Ministry for the Environment Reforming the New Zealand Emissions Trading Scheme:
  Proposed Settings

● MBIE – Discussion document: Accelerating renewable energy and energy efficiency

● NZGBC – Homestar v5 proposal

● MBIE Building Performance Group – Transforming Operational Efficiency.

Gas in a net zero carbon world
The advocacy work for “Gas” is carried out in conjunction with the Gas Association as any moves
to marginalise the role of “Gas” affect both our industries.

The importance of reinforcing the valuable role of “Gas” in the move towards net zero carbon is as
crucial as ever, whether this is via submissions on Government discussion documents, meetings
with officials, or information targeted at consumers.

                                 LPG Association of New Zealand (Inc)

                                                  9
Despite the Minister of Energy and the Prime Minister publicly acknowledging the important role
that gas has to play “for many years to come” the rhetoric around eliminating fossil fuels is all that
seems to make the news. Countering this mindset is proving difficult but remains necessary.

Government agencies, such as the Ministry for the Environment and MBIE, have also produced
discussion documents which provide their ideas of accelerating the reduction of CO2 emissions
and reducing/eliminating fossil fuels use. This approach was also adopted by the NZ Green
Building Council in their proposal to amend the Homestar Energy Rating system – achieving the
three highest levels of the rating system required the total elimination of any zero-fossil fuel use.

The Association is under the impression that Government had created the Climate Change
Commission to decide what were the most economic, efficient and effective means of reducing
carbon emissions. Unfortunately, we now seem to have other Government agencies and other
independent agencies deciding in a piecemeal fashion what the best approaches are.

To assist in countering these negative messages around the role of gas, the Association, in
cooperation with the Gas Association, prepared a number of submissions and prepared and
advertised a consumer-focussed animation to promote the role of gas in a net zero carbon world:

                  Issue                             Progress                                 Comments

  MBIE Building Performance Group –                                             This proposes time-linked limits on
  Transforming Operational Efficiency                                           fossil fuel use in all new buildings.
                                                                                Submission being prepared

  Ministry for the Environment                                                  Submitted response to these
  – Reforming the New Zealand                                                   proposals on behalf of GasNZ (Gas
  Emissions Trading Scheme:                                                     and LPG Associations)
  Proposed Settings

  MBIE – Discussion document:                                                   Submitted response to these
  Accelerating renewable energy and                                             proposal on behalf of GasNZ
  energy efficiency

  NZGBC – Homestar v5 proposal                                                  Submitted response to these
                                                                                proposal on behalf of GasNZ

  2nd animation to explain the role of                                          Completed
  gas in a net zero carbon world

  Digital advertising campaign to                                               Completed – over 1 million
  promote the animation                                                         completed views

Renewable LPG study
The Association has commissioned an independent study to look at the potential for producing
and using renewable LPG in NZ. This could be an important facet in positioning LPG as a fuel
option with reduced carbon emission potential.

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Aims and objec tives
● To study the processes and feedstocks involved in the production of renewable LPG (rLPG) and
  renewable dimethyl ether (rDME) used globally.

● To assess the feasibility of rLPG and rDME production in New Zealand using processes and
  renewable feedstocks available locally.

● To identify the short term and long-term feasibility options.

The study is in the final stages and will be completed before the end of October.

REG UL ATI O NS

Wo r k S a f e
Even before the certification issues caused by Covid, the industry was faced with the
prospect of LPG businesses closing down. This was because of a mismatch between
what the hazardous substance regulations required in terms of appropriate LPG site

                                                                                                          “
construction and how existing LPG sites were actually constructed (built to the
requirements that were required at that time).
                                                                                                    This was a sensible
The specific issues were, firstly, around the fire rating of walls used to reduce tank
                                                                                                      and reasonable
separation distance. The second issue related to the difference in tank separation
distances, for some intermediate tank sizes, between the HSNO requirements and                      outcome to prevent
AS/NZS 1596. The AS/NZS 1596 tank separation distance table, replaced the HSNO                      business closure for
requirements in the 2011 reassessment.
                                                                                                   reasons that were not
These issues affected hundreds of sites and short, medium and long-term
                                                                                                      safety related
solutions were agreed with WorkSafe in September last year. This was a sensible
and reasonable outcome to prevent business closure for reasons that were not
safety related.

The solutions were implemented, but unfortunately the long-term solution, which was
                                                                                                          ”
to amend the HSWA hazardous substance regulations, was drafted and agreed, but due to
legislative time pressures not yet implemented. This has meant a temporary solution to sort
out this issue will remain in place, at least until early next year. Far from ideal.

Other issues
There are still some issues which are not yet sorted out, including the decision to issue LPGA
guidelines that define what is sensible and reasonable. We also need to address the issue of
training material to benchmark the level of training required, dependent on workers’ interaction
with LPG.

                                  LPG Association of New Zealand (Inc)

                                                   11
Issue                              Progress                                Comments

  Fire rating for intervening walls                                              Will be solved by agreed
                                                                                 amendments to regulations.
                                                                                 Approved by Cabinet, but still not
                                                                                 cited. Temporary solution in place

  Differences between 2011 HSNO                                                  Will be solved by agreed
  regulation amendment for tank                                                  amendments to regulations.
  separation distances and previous                                              Approved by Cabinet, but still not
  requirements                                                                   cited. Temporary solution in place

  Lettering size for Hazchem signs                                               Agreed with WorkSafe that 30mm
                                                                                 will suffice in good visibility. LPGA
                                                                                 will issue guide

  Differing interpretation of                                                    LPGA will issue guidance. Will seek
  aggregation of 45kg cylinder                                                   WorkSafe approval
  quantities on same location

  Differing interpretation of the                                                LPGA will issue guidance. Will seek
  security requirements for cylinders                                            WorkSafe approval
  and tanks

  Extent of training requirements and                                            LPGA producing training material
  verification for location certification                                        which will identify levels of required
                                                                                 training

  Separation distance from railway                                               Completed, a policy definition was
  lines                                                                          issued by WorkSafe

C o v i d -19 P a n d e m i c
The pandemic lock down generated immediate concern over certification of LPG sites. With the
possibility of limited availability of Compliance Certifiers and limited availability of contractors to
undertake any required remedial work, the spectre of location certificates running out became a
real possibility.

This compounded the issues already caused by the fire rating for intermediary walls and the
mismatch between the HSNO tank separation distances and the requirements of AS/NZS 1596.

Given the legal requirement on LPG suppliers not to deliver LPG to sites that don’t have a current
location certificate, the potential for LPG sites to close was again a major concern.

The Association immediately contacted WorkSafe and organised discussions on potential
solutions. Association representatives worked closely with WorkSafe and a reasonable, pragmatic
and measured solution was agreed.

The solution was based on the following tiered approach:

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● The preferred approach would continue to be certification issued on time by the Compliance
  Certifier. If this was not possible because of Covid-related issues then:
● Compliance Certifiers should be given the ability to issue a temporary certification, without a
  site visit, with certain caveats. If this was not possible then:
● The site in question had the ability to use a PCBU self-assessment form that was created by the
  Association Technical Committee.

The PCBU self-assessment form, which was approved by WorkSafe, was an integral part of the
agreed approach. The self-assessment, along with the agreed tiered approach, was an excellent
example of effective Association advocacy on behalf of the industry.

As a result of this approach, no LPG site was shut down, which ensured the continued availability
of this essential service.

District Plans
We are beginning to make progress in our bid to shift the approach to hazardous substances in
district plans. Our goal is to ensure the Plans leave all but “significant” quantities of hazardous
substances to the HSNO and HSWA Regulations. This has taken many years to achieve and
significant involvement by the LPGA and other industry groups and Associations, but the result
will be reduced compliance costs for customers and the industry.

       Issue           Progress                                  Comment

  Dunedin                              Still in progress after five years and three years since the
  District Plan                        hearings

  New Plymouth                         Has moved away from restrictive resource consent trigger
  District Plan                        limits for LPG. But has used confusing term of Major
                                       Hazard facility for installations over six tonnes. LPGA
                                       submission requested changing this terminology

  Wellington                           Met with consultant hired by the Council. Very hopeful
  City District                        their approach will also move away from activity tables
  Plan                                 with restrictive LPG resource consent limits

  Porirua City                         Had discussions with their planning team. Their
  Council Plan                         discussion document indicated their approach will also be
                                       to only have controls on LPG in significant quantities

  Waikato                              Initially proposed the usual activity table with restrictive
  District Plan                        LPG resource consent trigger limits. Following
                                       submissions, the hearing and further submissions, the
                                       new proposal is to use the same approach as the New
                                       Plymouth plan

                                  LPG Association of New Zealand (Inc)

                                                   13
CO M MUNIC ATI O NS

                     G a s N Z “g a s i n a n e t z e r o c a r b o n w o r l d ” c a m p a i g n
                     A second animation was completed in April this year to explain how “gas” can contribute to the
                     transition to net zero carbon.

        “
   There were over
1.1 million completed
views and 35,000 click
throughs to the Beauty                     The digital marketing campaign finished in late August and the viewing figures
                                          were excellent. There were over 1.1 million completed views and 35,000 click
    of Gas website                        throughs to the Beauty of Gas website.

        ”                            ●
                                         To increase the relevance and effectiveness of the messaging, the adverts used:

                                           Demographic targeting focusing on Home Owners
                                 ●     Contextual targeting with placements running in news and current affairs content
                                     related to energy
                         ●    Behavioural targeting with placements focused on reaching people currently in the
                             market for an energy supplier or to buy electronic/gas home appliances.

                     2019 G a s N Z F o r u m
                     The 2019 Forum was a great success, measured both by feedback on the day and the higher
                     excellent/very good rating achieved in the post-Forum survey.

                     Themed ‘Pathways to net zero carbon’, the Forum was opened by the Minster of Energy Hon Dr
                     Megan Woods. A Forum feature was a set of presentations from OMV, First Gas, Genesis Energy
                     and Fonterra which highlighted what they are each planning for the transition to net zero carbon.
                     The presentations were followed by a joint question and answer session and resulted in a free and
                     frank discussion.

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Other topics included how
the European gas industry
is responding to the net
zero carbon challenge,
how the LPG industry can
respond to the net zero
carbon pressures, what the
challenges and opportunities
are for gas, what role can
hydrogen play, and how
will Taranaki feature in NZ’s
energy future.

Speakers included Barbara
Jinks, Director Government
Relations, Gas Infrastructure
Europe; David Tyler, WLPGA;
John Kidd, Director and Head
of Research at Enerlytica;
Gabriel Selischi, SVP Asia Pacific, OMV; Paul Goodeve, CE First Gas; Chris Jewell, CFO,
Genesis Energy; Tony Oosten, Sustainable Energy & Utilities Manager, Fonterra; and
Pamela Walklin, General Manager Transition, NZ New Energy Development Centre.
                                                                                                          “
                                                                                                      A great success,
                                                                                                    measured both by
There was also a guest appearance by Extinction Rebellion, which added the extra
dimension, workload and cost of producing and overseeing a full security plan for                    feedback on the
the Forum.                                                                                          day and the higher
                                                                                                    excellent/very good
WLPGA                                                                                               rating achieved in
The Association joined the World LPG Association (WLPGA) in early 2019 to benefit                     the post-Forum
from the wider view and experience of the world’s LPG industries.
                                                                                                          survey

                                                                                                          ”
The WLPGA mission is to:

● Demonstrate the benefits of LPG and inform, educate and influence all stakeholders
● Support the development of LPG markets

● Promote compliance with standards, good business and safety practices

● Identify innovation and facilitate knowledge transfer.

The WLPGA has developed long standing partnerships with other international bodies such as
various departments of the UN, the World Health Organization (WHO), Regional Development
Banks and a number of well-respected international NGOs such as the Partnership on Clean
Indoor Air (PCIA) and E+Co. The geographical spread and diversity of the WLPGA’s membership
makes the association a representative, trusted and logical partner in international discussions.

Our Association is tapping into the WLPGA resources to assist our role in promoting LPG.

Recently the Executive Director has become a member of the WLPGA renewable LPG committee
and this has helped in the preparation of the NZ renewable LPG study.

                                  LPG Association of New Zealand (Inc)

                                                   15
Member sur vey
A member survey was undertaken to obtain feedback on the proposed Association priority list for
the 2020/21 year.

The results were:

                                     Priority                                             Rating out
                                                                                             of 5

  Influence how LPG is perceived by consumers, Government and other                          4.7
  agencies

  Work with WorkSafe and the EPA to clarify compliance requirements                          4.3

  Work with emergency services and industry to improve LPG incident                          4.1
  response

  Undertake a bio/renewable LPG feasibility study for NZ                                     3.9

  Using webinars for updating members on significant issues                                  3.4

Other ideas suggested by members as priorities were:

● How "green" is LPG? How does it rate against other fossil fuels, like wood and coal? What would
  be the cost to the economy of converting away from LPG? What would it cost the domestic
  homeowner to convert from LPG?
● The need to let consumers know LPG supply is safe and able to be supplied in the long term.

The results of the survey have been noted by the Executive and will inform the annual objectives.

OPERATIONS

Te c h n i c a l C o m m i t t e e
This has been another very productive year for the Technical Committee. As well as the raft of
WorkSafe-related issues described earlier in this report, the Committee has:

● Drafted a PCBU self-assessment form for use during the Covid lockdown periods ●

Amended Code of Practice No 2: Twin Pack Installations
● Amended Code of Practice No 5: Multi-cylinder Installations
● Produced a guide on how to handle fibre ETPs in cylinder hazardous area zone

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● Worked with the HSE Committee and is in the process of producing three new training
  documents for:
   ● workers that “handle” LPG

   ● workers that do not handle LPG, but where there is LPG at their workplace

   ● the on-site filling of LPG.

● Prepared a number of LPGA guidance notes to cover areas not fully explained in the HS
  regulations.

CoP 2 and 5
Both Codes of Practice 2 and 5 are aimed at gasfitters and developers and were comprehensively
updated and amended. One of the main amendments was to add back all the extracts and
drawings from AS/NZS 5601 and AS/NZS 1596, which were in the original versions.

Fibre boxes
Working with the AS/NZS 60079 Explosive Atmospheres Standard Committee, the LFCs
(local fibre companies) and an electrical engineering consultancy, the Association
produced a guide that explained how fibre ETP’s should be treated for new and
                                                                                                          “
                                                                                                    Explaining exactly
existing installations.                                                                          how fibre ETP’s should
This issue has been a significant cause of misunderstanding and complication                     be treated in new and
over the years, creating problems for LPG suppliers and customers.                               existing installations,
The guide has solved this issue by explaining exactly how fibre ETP’s should be                  by LPG suppliers, the
treated in new and existing installations, by LPG suppliers, the fibre installation
                                                                                                    fibre installation
companies and the gas fitters.
                                                                                                    companies and the
The guide was aimed at gas fitters and LPG suppliers and was distributed through
the Plumbers Gasfitters and Drainlayers Board. It is on the Association website.                       gas fitters

Guidance note on LPG equipment registers                                                                  ”
Suppliers and importers of certain types of gas system components are required to
ensure the equipment they offer is certified as conforming to NZ requirements. This record of
compliance is to be recorded in various registers maintained by MBIE/ WorkSafe, and be accessible
online at https://WorkSafe.govt.nz/the-toolshed/registers/

There was some considerable confusion as to the definition of a “fitting” with regards to LPG
systems and therefore what components need to be certified and registered.

Referencing the regulations and including consultation with WorkSafe, the guide makes it clear
that the requirement for certification and registration has the following meaning:

● Any component which connects to a cylinder valve outlet is a “fitting”. This includes
  proprietary assemblies such as flexible connectors (pigtails), regulators with fixed inlet
  connections etc., and (Note that all Regulators are required to be certified and registered
  separately).

                                   LPG Association of New Zealand (Inc)

                                                    17
● It does not include loose componentry which is subsequently attached to the “fitting”
                        such as hose or valves, or pipe or pipe-fittings etc.

                      Further work is needed to sort out who is actually available to carry out the certification and
                      why equipment certified by other recognised certification bodies, such as the AGA, cannot be
                      accepted.

                      New training materials

                      Wo r k e r s o n a s i t e t h a t h a s L P G p r e s e n t
                      The removal of the requirement for Approved Handlers and its replacement with a more general
                      requirement has produced a confusing array of interpretations of what is “handling” and therefore
                      who on a site with LPG needs training and to what level. There is also confusion about what
                      “demonstrates” means.

                            The new requirement states: The PCBU with management or control of the hazardous substance
                              location can demonstrate that any worker at the location who handles a class 2.1.1, 2.1.2, or 3.1
                                substance has received information, training, and instruction in accordance with regulation
                                  4.5.

       “
                                        To provide clear, sensible and reasonable guidance the Association is producing
                                         training material for those who both do and don’t “handle” LPG, including a
  The Association                         sensible definition of handling. The training material will include an assessment
is producing training                      guide and a certificate for completion.

 material for those                        The intention is that certification to this training material will provide a
                                           demonstration of the PCBU’s responsibilities regarding training.
  who both do and
don’t “handle” LPG

       ”
                                          On-site LPG f illing training
                                       This material covers both the filling of cylinders greater than 110 litres WC (water
                                      capacity) and onsite filling. This is to fill a gap in the current cylinder training which is
                                    limited to up to 110 litres WC, and to cover on-site filling.

                             Guidance notes
                      The Technical Committee is preparing guidance notes for a range of items, including:

                      ● aggregation of cylinder locations

                      ● security requirements for LPG cylinders and tanks

                      ● signage.

                      These are being produced as sensible and reasonable guides for requirements which are
                      not sufficiently clearly described in regulations, and which lead to varying interpretations by
                      Compliance Certifiers.

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HSE Committee
The HSE Committee tackled the following issues:

● inconsistent use of the cylinder switching protocol

● pin holes in the base of some 45kg cylinders

● LPG training for workers.

S TA N D A R D S
Another busy year for the AG-001 Gas Appliances and AG-006 Gas Installation Standard
Committees, of which the Executive Director and others are members.

AG - 0 01 – t h e f o l l o w i n g St a n d a r d s w e r e a m e n d e d d u r i n g t h e l a s t t w e l v e
months:
● AS/NZS 5263.1.1:2020 (Gas appliances, Part 1.1: Domestic gas cooking appliances)
● AS/NZS 5263.1.2:2020 (Gas appliances, Part 1.2: Gas fired water heaters for hot
  water supply and/or central heating)
● AS/NZS 5263.1.6:2020 (Gas appliances, Part 1.6: Indirect gas-fired ducted air
  heaters)
● AS/NZS 5263.1.3 (Gas appliances, Part 1.3: Gas space heating appliances)
● AS/NZS 5263.1.8 (Gas appliances, Part 1.8: Decorative effect gas appliances).

AG - 0 0 6 – G a s I n s t a l l a t i o n St a n d a r d s
● AS/NZS 5601.1:2013 amendment 4

● Full review of AS/NZS 5601.1: Gas Installations
● Full review of AS/NZS 5601.2: (Gas installations Part 2: LP Gas installations in caravans
  and boats for non-propulsive purposes).

AG - 013 – C o m p o n e n t s u s e d f o r G a s A p p l i a n c e s a n d E q u i p m e n t
Review of AS/NZS 1869: Hose and hose assemblies for liquefied petroleum gases (LP Gas),
natural gas and town gas.

M E- 015 – St o r a g e a n d H a n d l i n g – L i q u e f i e d Pe t r o l e u m G a s e s
Amendment to AS/NZS 1596: Storage and Handling of LP Gas.

                                           LPG Association of New Zealand (Inc)

                                                              19
LPG SALES
The 2019/20 sales stats have to be viewed in light of the significant effects of Covid-19. LPG sales
have been affected by the various lock down levels and this has resulted in no change to overall
sales volume, but variations in each segment.

The most obvious negative effect can be seen, understandably, in the bulk and forklift categories,
which are more aligned to industrial and commercial markets.

The 9kg segment decreased by 1 per cent over the previous year. The automotive market
continues to decline, with a significant 31 per cent reduction. Although some of this is
undoubtably down to reduced taxi and commercial vehicle usage.

The 45kg market increased 9 per cent, probably reflecting increased working from home, while
the bulk market decreased by 9 per cent and the forklift sector fell 10 per cent.

However, the number of 45kg customers has continued to increase and now stands at
 approximately 158,000 residential customers (up approximately 7 per cent). The number of
    commercial customers increased by approximately 12 per cent to 16,300.

                           2019 –2020 S a l e s t o t a l 18 5, 595 t o n n e s

      1,709
      1%                                                                                  20,745
                                                                                                   Auto
                                                                                            11%

                                                                                                   9kg
      55,750
      30%
                                                                                                   45kg

                                                                                          94,875
                                                                                                   Forklift
      12,516                                                                                51%
      7%
                                                                                                   Bulk

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A SS O CIATI O N
                                       COMMITTEES &
                                        MEMBERSHIP

LPG Association of New Zealand (Inc)

                 21
E X E C U T I V E C O M M I T T E E R E P R E S E N TA T I O N

E x e c u t i v e e l e c t e d a t 2019 a n n u a l m e e t i n g
OMV NZ                           Mr R Bruce                                     Producer

Liquigas                         Mr A de Geest                                  Distributor

OnGas                            Ms S Pellow                                    Wholesaler (replaced by Mr C Eagleton)

Contact Energy                   Mr P Dring                                     Wholesaler

ELGAS                            Mr N Hannan                                    Wholesaler

Genesis Energy                   Mr C Jardine                                   Wholesaler

Rinnai NZ                        Mr R Ferner                                    Appliance Supplier

River City Gas                   Mr G Hardie                                    Retailer (since resigned)

Gasco Pipeline Ltd               Mr S Rosborough                                Non-auto Installer

President
Mr Cameron Jardine was elected to the two-year term as President.

Vice President
Mr Albert de Geest was elected Vice President at the December 2019 Executive meeting.

OTHER COMMITTEES

A s s o c i a t i o n Te c h n i c a l C o m m i t t e e
Mr K Bailey                                                       Mr N Foster

Mr L Barilla, replaced by Mr S Okey                               Mr P Gilbert

Ms R Cleaver, Chair                                               Mr D Reid

Mr K Daly, replaced by Mr R Smith

Association HSE Committee
Ms J Burke                                                        Ms S Parkinson

Ms R Morris, Chair                                                Mr C Stevens

Mr S Okey

                                         R e p o r t f r o m t h e E x e c u t i v e 2 02 0

                                                                22
We l l i n g t o n R e g i o n a l H a z m a t C o o r d i n a t i n g C o m m i t t e e
The Executive Director represents the Association.

N Z St a n d a r d s G a s S e c t o r A d v i s o r y C o m m i t t e e
The Executive Director chairs the Committee and represents the Association.

M E-15, A S / N Z S 159 6 : L P G St o r a g e a n d H a n d l i n g
The Executive Director and Mr R Smith represent the Association.

AG - 0 0 6, A S / N Z S 5 6 01 : G a s I n s t a l l a t i o n St a n d a r d
The Executive Director represents the Association.

AG - 0 01, A S / N Z S 526 3 : A u s t r a l i a n G a s A p p l i a n c e St a n d a r d s
This is the head Committee looking after the development of the new suite of gas Standards that
New Zealand has agreed to make joint.

The New Zealand Gas Industry is represented by the Executive Director and Mr J Swarbrick.

AS/NZS 4645: Gas Distribution Net work s
Mr K Daley replaced by Mr W Yu represents the Association on this Committee.

MEMBER SHIP O F THE A SS O CIATI O N

Producer
Greymouth Petroleum Holdings OMV New Zealand

Todd Energy

Distributor
Liquigas Ltd

                                    LPG Association of New Zealand (Inc)

                                                      23
Wholesaler                                         Equipment Supplier
Elgas                                              Aqualine Products

Genesis Energy                                     Gameco NZ Ltd

OnGas                                              Manchester Tank

Rockgas                                            Vapor Gas Equipment Ltd

Retailer                                           Appliance Supplier
Arthur Cates Ltd                                   Rinnai NZ Ltd

Auto Gas Centre Ltd
                                                   Installer
Dive & Gas
                                                   BHS Contractors Ltd
Eastern Gas and Hire
                                                   Climate and Plumbing
ECO Central
                                                   Gas Engineering Services
Far North Gas
                                                   Gasco & Pipeline
Gas Pro Waikato
                                                   Gasco North and South
Gasnet Ltd
                                                   GasTech NZ Ltd
Gaspro Mount
                                                   Hallrite
GetGas
                                                   Kevin J Morgan Plumbing
Island Fuels Ltd
                                                   Liquid Gas Services Ltd
Lama Gas Services
                                                   LPG Engineering Services
Mata Gas
                                                   McIvor Plumbing and Gasfitters
Metro Gas

North Harbour Hire Ltd
                                                   Tr a n s p o r t e r
Porirua Cylinder Testing
                                                   Alexander Group
Waiheke Energy Centre
                                                   Lowes Industries
Z Energy
                                                   Oceangas Services Ltd

                                                   Pacific Fuel Haul Ltd

                                                   Uhlenberg Haulage Ltd

                           R e p o r t f r o m t h e E x e c u t i v e 2 02 0

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Associate Member
Aber Holdings

Approved Compliance Certifiers

Bromic NZ

Custom Controls Ltd

EMS Ltd

Fiji Gas

Galpro Stylex

Gas Energy Australia

Hale & Twomey Ltd

Hamilton Plumbing Co Ltd

Heatrite

LP Gas Association (UK)

LPG & Safety Consultants

National Propane Gas Association

Nationwide Fire Protection

Penniall & Jordan Co Ltd

SGS NZ Ltd

                                 LPG Association of New Zealand (Inc)

                                                  25
R e p o r t f r o m t h e E x e c u t i v e 2 02 0

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