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If it was under warranty it would most certainly be covered, but I assume your warranty has run out. Even so there is no good reason for the water pump to need replacing after 20,000 km, except for a faulty part, so I would suggest you take it up with Toyota. At the very least they should pay for the replacement part.
FEW modern engines use oil, and the consumption you are experiencing is high. Talk to the dealer, and if you are unhappy with its response contact Toyota's Customer Assistance people and register your complaint. Take an accurate record of the oil usage. It's no good going to the dealer if you have no hard evidence to back up the claim.
WHAT you got was Toyota's official answer that they don't recommend fitting LPG. They say that because they haven't tested the engine on LPG and there are no provisions within the engine for it to withstand LPG. Without any evidence that there won't be a problem with LPG, Toyota will -- naturally -- tell you not to convert it. If they did tell you it was OK and you then had a problem, they would be liable to cover the damage. That stands to reason. But that doesn't mean it can't be converted to LPG. Contact a reputable LPG installer and ask for their advice. To find a local installer, visit www.lpgaustralia.com.au.