Rockgas bought for $260m

Contact Energy has sold its LPG business Rockgas for $260 million.

First Gas announced in a statement yesterday its sister company, Gas Services New Zealand (GSNZ), had completed the purchase, with chief executive Paul Goodeve saying the acquisition complemented the gas transmission and distribution company’s existing business.

While Rockgas will be owned by GSNZ, it will be run as part of the First Gas group. First Gas is an Australian-owned natural gas transmission and distribution company based in New Plymouth. Last month, GSNZ was given approval by the Overseas Investment Office (OIO) to purchase Rockgas from Contact.

Rockgas is the largest LPG retailer in New Zealand, with a market share of approximately 41 per cent. It serves 88,000 customers from seven branches and a network of 28 franchises. GSNZ has offered employment to all employees within Contact who work exclusively on LPG – about

130 staff. The Rockgas name will remain and Rockgas’ franchises around New Zealand will be unaffected by the purchase, Goodeve said.

‘‘For Rockgas customers, staff and franchisees it will remain business as usual," he said.

Contact will continue to sell LPG to its mass market customers, while also providing back office services to GSNZ after the sale.

GSNZ, a dedicated gas infrastructure company, will operate the fulfilment side of the business by sourcing LPG, and picking up, refilling, and delivering it to the mass market. In addition, GSNZ will directly manage bulk LPG customers, and supply branches and franchises.

First Gas is New Zealand’s largest owner and operator of gas networks, with more than 2500 kilometres of high pressure gas transmission pipes and about

4800km of gas distribution pipes in the North Island.