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Sweet deal for Natural Gas

By Phil Boeyen, ShareChat Business News Editor

Thursday 7th December 2000

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Natural Gas (NZSE: NCH) has beaten Contact Energy (NZSE: CEN) to win a lucrative Auckland gas contract for the New Zealand Sugar Company's Chelsea refinery at Birkenhead.

NCH is hailing the newly won business as its largest single natural gas supply contract in Auckland, where it says it is keen to expand its business.

The contract is for two years to supply 0.7 petajoules of gas a year - the equivalent of the annual average demand of around 26,000 households.

A company spokesman, Chris Graham, says the agreement incorporates an innovative targeting and monitoring regime whereby gas utilisation experts will work alongside refinery personnel to maximise energy efficiency at the refinery.

Mr Graham says his company is pleased to have been successful with its competitive tender against the incumbent supplier, Contact Energy, and attributes the success to NCH's ability to apply high levels of customer service and technical support to its gas supply contracts.

"The agreement is a significant strategic accomplishment in the ongoing development of the company's gas supply position in the highly competitive Auckland energy market."

NCH says revenue details of the deal are commercially sensitive and have not been released.

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