Late on Friday NGC chief executive Phil James, in response to market speculation, said NGC was in informal discussions with New Plymouth-headquartered Powerco and Auckland-headquartered Vector about potential business opportunities, but he declined to discuss the nature of the talks.

NGC had consistently advised the market over the past year that it was actively seeking growth opportunities, particularly in energy infrastructure. “This is consistent with NGC’s clearly stated objective of developing its position as a leading New Zealand energy services business,” James said.

“The energy sector is dynamic and continually presents growth opportunities. In pursuing them, it is to be expected that NGC will, from time to time, hold discussions with other companies, particularly those engaged in similar activities. These particular talks are in their infancy and there is no certainty as to outcome.”

Powerco chief executive Steven Boulton told EnergyReview.net that his company had been in dialogue with NGC for a while, holding informal discussions on a number of potential opportunities. "These discussions are Powerco looking at our strategic options, there’s nothing more than concept stuff at this stage.”

However, the New Plymouth District Council, which owns 38% of Powerco, is to hold an extraordinary meeting on the matter tonight, with chief executive Rodger Kerr-Newell saying the talks between the three companies could mean exciting development options for the council.

Vector, which is publicly owned by the Auckland Energy Consumer Trust, has refused to comment.