Powerco eyeing Tasmania

By CHRIS DANIELS energy writer

New Plymouth-based gas and powerlines company Powerco has been tipped as the lead contender in a bid to install gas pipelines to 100,000 homes in Tasmania.

Powerco chief executive Steven Boulton is, however, staying coy on the deal, refusing to comment on any details of the project.

Tasmanian Deputy Premier Paul Lennon and State Treasurer David Crean reportedly visited Powerco in New Zealand last week, something Boulton would not confirm or deny.

"We talk to a lot of players all of the time, so we're not making a comment about who we have spoken to recently."

Provision of natural gas has been a hot political issue in Tasmania, with a previous tender round failing to deliver a suitable bidder.

Asked to comment on media reports that Powerco is in the final running for the tender, Boulton said: "They can make whatever comments they want, but Powerco's position is still the same - we're trying to focus on organic and incremental growth rather than any more major acquisitions."

He said Powerco got involved in a process around 12 months ago, when the Tasmanian Government was "building a shortlist of parties to go through some final negotiations with".

"We've got between five and 10 players we talk to all the time and we don't identify who they might be until some arrangements are made," he said.

He said he did not intend to make any announcements to the market this week.

Powerco's recent purchase of assets from UnitedNetworks has made it New Zealand's largest gas distribution company and second-largest electricity company in terms of consumer connections (about 390,000 in total).