Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ Super Fund eyes North American energy market with US$250M

NZ Super Fund eyes North American energy market with US$250 mln investment

By Paul McBeth

March 21 (BusinessDesk) - The New Zealand Superannuation Fund will invest up to US$250 million with New York Stock Exchange-listed KKR to gain exposure to the growing disruption in North American energy markets created by shale oil and gas resources.

The so-called Cullen fund, named after former Finance Minister Michael Cullen who designed it, will invest up to US$175 million in KKR energy private equity investments ranging from natural gas exploration, production, and upstream, midstream and downstream activity, with the remainder going into the KKR Energy Income and Growth Fund, which focuses on unconventional gas and oil resources in North America.

Matt Whineray, the fund’s general manager of investments, told BusinessDesk the move seeks to latch on to the opportunity thrown up in North America where gas increasingly replaces coal as an energy source as a result of the increasing use of hydraulic fracturing, or fracking.

“The opportunity we see provides capital for that transition to gas and gives more control and information over the investment,” he said. “We don’t want to force particular allocations to it, we want to take advantage of KKR’s expertise from this particular opportunity.”

The other leg of the Super Fund’s energy strategy is in alternative energy investments, such as its stakes in US wind turbine maker Ogin.

Whineray said KKR is a signatory to United Nations-backed principles for responsible investment, and that the mandate gives the fund the ability to manage and measure the environmental, social and governance risks.

The mix of assets across the sector meant the investment was more a medium-risk, he said.

KKR Australian head Justin Reizes said the increase in gas supply and subsequent fall in price meant the sector was hungry for capital to fund new initiatives, with the growing potential for the US to become a net energy exporter.

While the sector is still developing, shale gas differs from oil exploration in that it’s easier to determine the size of potential gas finds, Reizes said.

KKR has been an investor in the energy sector for more than 20 years, and has been at the forefront of the shale gas transition since 2009, he said.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news