First Gas Completes Purchase of Maui Gas Pipeline in New Zealand

First Gas Limited on Wednesday said it has completed the acquisition of Maui gas pipeline following all necessary regulatory and government approvals.

In late 2015, First State Funds, the owners of First Gas Limited, agreed to acquire the pipeline from Shell, Todd and OMV (collectively known as the Maui Mining Companies) for NZ$335 million.

The Maui gas pipeline is New Zealand’s largest high pressure transmission pipeline. It was built exclusively for delivering gas from the Maui natural gas field in the 1970s.  The 307 km pipeline will be operated by First Gas, which also operates the former gas transmission and distribution network owned by Vector Gas Limited (VGL) following First State Funds’ recent purchase of VGL from Vector Limited.

“In purchasing the Maui Pipeline in addition to the VGL gas network, First Gas will own and operate New Zealand’s most significant gas transmission and distribution network,” First Gas interim CEO, Richard Krogh said.

The combined network will comprise of 2,500 kms of high pressure gas transmission pipelines and stations that supply natural gas from Taranaki to industrial consumers throughout the North Island, as well as 4,800 kms of distribution pipelines in Northland, Waikato, the Bay of Plenty, the Central Plateau and the Kapiti Coast servicing more than 60,000 end customers.