The Wellington-headquartered company, which owns and operates the North Island high-pressure reticulation network, last Friday said it was seeking Commerce Commission approval to buy the UnitedNetworks pipelines.
However, company spokesman Keith FitzPatrick said the application to the commission was a routine procedural matter, as NGC had not yet made any decision regarding whether to bid or not for any UnitedNetworks’ assets. “UnitedNetworks' gas network assets align well with NGC's existing core activities, though NGC has yet to determine the extent to which it will participate in any UnitedNetworks sale process.”
UnitedNetworks announced last month that it was seeking a buyer for its shares or assets because majority shareholder Aquila wanted to quit the firm.
UnitedNetworks’ gas distribution network is largely in the greater Auckland and Wellington areas, the Manawatu and parts of Hawkes Bay. NGC is involved in distribution around various parts of the North Island, including the Hibiscus Coast, north of Auckland, and some of South Auckland. AGL, 66% owner of NGC, sold its Hutt Valley and Porirua Basin gas networks to New Plymouth-headquartered Powerco in June, 2001.
FitzPatrick declined to comment on a First NZ Capital report, which last week suggested NGC sell its electricity generation assets to fund any gas network purchases.
NGC presently owns all of the 376MW Taranaki Combined Cycle (TCC) power station at Stratford, 50% of the smaller south Auckland Southdown gas-fired station as well as the 25MW Kapuni co-generation plant and 32MW Cobb hydro station.
First NZ Capital said possible buyers for the TCC station included Wellington-based Todd Energy and Contact Energy and Auckland-headquartered Genesis Power, which could defer its new 400MW plant at Huntly if it bought the TCC station.
NGC expressed a desire to return to its core gas reticulation, distribution and retailing business when it exited electricity retailing last year after a disastrous experience during the cold, dry winter of 2001, which saw spot wholesale power prices skyrocket.
