Gas Services New Zealand Ltd (GSNZ) to acquire Rockgas

Gas Services New Zealand Ltd (GSNZ) to acquire Rockgas

Gas Services New Zealand Ltd (‘GSNZ’) – an associated company of First Gas Ltd – is buying Rockgas, the LPG business of Contact Energy.

Rockgas is the largest LPG retailer in New Zealand servicing 85,000 customers from six branches, three satellite branches as well as a network of 27 franchises.

CEO Paul Goodeve says GSNZ specialises in operational services for gas transmission and distribution, and Rockgas is a complementary extension to the business.

“This acquisition is about leveraging our knowledge, expertise and resources to promote LPG and also diversify and grow our business.

“The $260 million deal is subject to approval from the Overseas Investment Office and we expect to complete the contractual arrangements and purchase early next year.”

In December 2017 GSNZ bought the Ahuroa gas storage facility from Contact Energy for $200 million and Mr Goodeve says the Rockgas acquisition fits with its strategy of giving producers, shippers and customers more flexibility in meeting their energy needs.

“From a franchise and customer perspective nothing will change in the short-term and we hope to demonstrate advantages through the value and quality of service that a specialist gas infrastructure company will bring.

“For Rockgas, its customers, staff and franchisees it remains business as usual.

“This is an exciting opportunity and fits well with our long-term investment approach,” says Mr Goodeve.

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