Natural Gas terminates AGL money line

By Phil Boeyen, ShareChat Business News Editor

Friday 3rd May 2002

Natural Gas Corp (NZSE: NCH) has terminated a $135 million credit facility which was provided by The Australian Gas Light Company after NGC withdrew from the retail electricity market last year.

NGC says the loan had previously been drawn to $124 million and was repaid in full in December last year from new bank debt facilities of $850 million.

Chief executive, Phil James, says the company did not need to make further calls on the AGL facility and its termination reflects NGC's confidence in both the adequacy of its new bank debt facilities and continuing satisfactory cashflow generation from its businesses.

AGL, which is majority owner of Natural Gas Corp, had provided the short-term facility in the midst of last year's wholesale power crisis which plunged NGC to a full year loss of $351 million. The facility was scheduled to expire on 1 July this year.

Meanwhile the company has announced that it is seeking compensation of $120,000 from the contractor whose bulldozer ruptured high-pressure gas pipeline at Himatangi, near Foxton, in February.

The company says gas supply to the lower half of the North Island was cut for almost 24 hours when a bulldozer operating on the pipeline easement without NGC's knowledge or approval, struck the pipe.

NGC says the incident, and its claim for compensation, reinforce the obligation of care on contractors and others working near gas pipelines or other utility services.

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