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Vector inks gas sales with Fonterra, steel and power companies

Monday 11th June 2012

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Vector, Auckland gas, electricity and telecommunications networks owner, has extended its firmly contracted gas, with 5 petajoules of annual gas contracts signed with three major industrial users.

The new contracts, with Fonterra Cooperative Group, New Zealand Steel, and power company MightyRiverPower, extend the life rather than size of Vector's gas book, a company spokeswoman said. Vector sold 26.1PJ last year, with the new contracts representing around 19 percent of the company's total gas portfolio.

Terms for the contracts are between one and six years running from the middle of this year, while Vector has also signed for 5PJs of gas annually from Shell New Zealand, running between January 2015 and December 2018.

“These transactions are significant to Vector as they extend certainty of gas supply and sales volumes from now to 2018,” said chief executive Simon Mackenzie.

Signing three new contracts with blue chip customers was a significant win in a very competitive market, he said.

The Vector share price was unchanged at $2.66 today.

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