Sharechat Logo

Contact extends Fonterra electricity supply at Te Rapa, will buy Genesis gas

Wednesday 25th June 2014

Text too small?

Contact Energy, the NZX-listed energy retailer and generator, has secured a six-year contract with Genesis Energy to buy its gas while extending its steam and electricity supply contract with Fonterra Cooperative Group at its Te Rapa plant.

The power company will buy 27 petajoules of gas from Genesis over six years in a related deal to an eight-year extension of its supply contract with Fonterra, Wellington-based Contact said in a statement. The supply contract with Fonterra, the world's largest dairy exporter, extends from July next year. Contact has supplied steam and electricity for the Te Rapa cogeneration plant  since 1999.

Contact declined to comment on the value of the contracts, citing commercial sensitivity.

Genesis, New Zealand's largest energy company by customer base and the last of the government's assets to be partially privatised, listed on the NZX in April. In its prospectus it said the long position on gas would reduce between 2015 and 2020. The Contact deal reduced its long position in natural gas, the energy generator and retailer said in a separate statement.

Shares in Contact gained 0.4 percent to $5.22 and have risen 1.4 this year. Genesis shares rose 0.6 percent to $1.78, up 15 percent from its $1.55 initial public offer price.

 

 

 

 

BusinessDesk.co.nz

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar weaker against British pound on EC president's Brexit optimism
Todd plans Kapuni drilling campaign
MARKET CLOSE: NZ shares gain; appetite for KFC helps Restaurant Brands hit record
NZ dollar mixed, buffeted by Fed talk and downunder data
Super Fund can expect lower returns over next decade - review
ANALYSIS: Should penalties for continuous disclosure breaches be relaxed?
Fletcher seeks urgent talks on Ihumatao stalemate
NZ economy grows 0.5% in June quarter, beating expectations
Restaurant Brands lifts 2Q sales; appetite for KFC offsets ditched Starbucks
Auckland jet fuel arrangements a potential barrier to new entrants

IRG See IRG research reports