However, commentators wonder how much Shell would have got from the sale process, which was extended last October by the Commerce Commission, or even if Shell had to pay NGC to take EGCL off its hands.

The sale of EGCL to NGC completed the undertakings given to the Commerce Commission by Shell at the time of the acquisition of Fletcher Challenge Energy, said Shell NZ chairman Lloyd Taylor.

"We are pleased to have completed this sale ahead of their (extended) deadline, and to have completed the disposal of all the assets required."

Commentators, though wonder about the details of the EGCL deal. "I still don't know anyone in their right mind who would want to take on this contract," one commentator told EnergyReview.Net today.

He said that EGCL (formerly Fletcher Challenge Gas Investments Ltd) became competitively insignificant once Shell had to divest more substantial assets to win commission approval to buy FCE in 2001.

The sole purpose of FCGIL was to buy Maui Gas from Contact Energy and onsell that gas to the Taranaki Combined Cycle power station, which Contact Energy now owns, through to 2010.

Though the FCGIL-Contact purchase contract was tied to Maui reserves, the supply contract to TCC was not, leaving new owner NGC exposed to any supply side risk.

An earlier end to the faltering Maui field, other than the contracted 2009, would leave NGC having to fill in any gap between the end of Maui and the end of the TCC supply contract in 2010.

Though this could be with gas from any source, the additional costs could prove prohibitive, said the commentator.

However, there may be some upside potential. If Methanex closes its methanol plants in 2006 or earlier, as is widely anticipated, then that would free up substantial quantities of Kapuni gas, including the 14PJ a year which NGC can sell as a consequence of buying Kapuni Gas Contracts Ltd from Shell last year.