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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news