End to Kupe gas field saga

By Phil Boeyen, ShareChat Business News Editor

Tuesday 1st May 2001

The Commerce Commission has dropped proceedings against Fletcher Challenge, Electricity Corporation and Genesis Power in relation to the Kupe gas field.

The move follows a confidential settlement between the parties.

Commission Chair, John Belgrave, says an original statement of claim had been filed in December 1997, alleging that Fletcher had obtained control of the gas field and that transactions between the company and ECNZ breached the Commerce Act.

He says from the outset all the defendants have denied any liability and there has been an ongoing series of challenges to the Commission's proceedings.

However the Commission has discontinued the proceedings in light of the recent purchase of Fletcher Energy by Shell. As part of the sale process Shell agreed to divest all of Energy's interest in the Kupe gas field.

Mr Belgrave says Fletcher divested its interests in Natural Gas Corporation as from July 1999.

"In these circumstances the Commission now believes that a competitive gas market in New Zealand exists.

"The proceedings have been discontinued accordingly following a satisfactory confidential agreement reached with all the parties involved."

Comments from our readers

No comments yet