Contact fails in bid for power station

By CHRIS DANIELS

Contact Energy has failed in its attempt to buy an Australian power station from US energy giant NRG.

Chief executive Steve Barrett said yesterday that NRG had declined its offer to buy "any of its Australian electricity generation assets".

"Regrettably, we have not been able to conclude any sales agreements with NRG at prices which meet our investment criteria," Barrett said. "Our discussions with NRG are now at an end."

Though never specified, the primary object of Contact's attentions was a large coal-fired power station near Flinders in South Australia.

It is the second time Contact has tried to buy the station.

Barrett said that although the company was disappointed the power station venture had failed, Contact would continue to look for growth opportunities in Australia.

New Zealand's largest listed power company is, however, now looking at a target asset somewhat closer to home - NGC's Taranaki Combined Cycle Gas-fired power station at Stratford.

It has also said it is interested in NGC's small Cobb hydro station near Nelson.

NGC, which hopes to get around $500 million for its station, is also understood to be looking at offers from state-owned generator Genesis, Todd Energy and two Australian generators.