This buy-out will provide Origin with full control of Rockgas, the largest distributor of LPG in New Zealand with an annual turnover of NZ $80 million.

Under the agreement Origin will continue to supply Caltex with LPG for its autogas operations in New Zealand.

Commenting on the agreement Origin's executive general manager, Wholesale & Trading, Karen Moses, said, "This acquisition consolidates Origin's existing position in New Zealand and leverages the company's experience in supplying LPG to homes and businesses in Australia and the Pacific.

"This investment is consistent with Origin's focus on the competitive segments of the energy market. It also complements Origin's efforts to strengthen its position in gas markets as demonstrated by the recent acquisition of a 50% interest and operatorship of New Zealand's Kupe gas field."

Origin originally acquired Rockgas in a joint venture with Caltex New Zealand in 1990, as well as supplying LPG to more than 200,000 homes and businesses in Australia and to nine Pacific countries.

"The joint venture with Caltex has been very successful and we are particularly pleased that Rockgas will remain Caltex's preferred LPG supplier. We look forward to the on-going relationship with Caltex in the New Zealand LPG market."

Established in 1934 Rockgas supplies over 50% of the New Zealand market, servicing 300 bulk industrial clients, 7,000 commercial accounts and over 13,000 domestic customers through its operation of retail outlets and franchise operations. It distributes to around 300 automotive LPG refuelling outlets around New Zealand, and leads the development of LPG reticulation in New Zealand with networks in Queenstown and Christchurch.