Vector inks gas sales with Fonterra, steel, power companies
New contracts signed with Fonterra, New Zealand Steel and MightyRiverPower.
BUSINESSDESK: Auckland gas, electricity and telecommunications networks owner Vector has extended its firmly contracted gas, with five petajoules of annual gas contracts signed with three major industrial users.
The new contracts, with Fonterra, New Zealand Steel and 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% 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,” chief executive Simon Mackenzie said.
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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Vector inks gas sales with Fonterra, steel, power companies
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