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Shell seals Maui pipeline sale

By  Wednesday, 15 June 2016 01:46
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Shell-controlled Maui Development has finalized the sale of its Maui natural gas pipeline to Australian asset management firm First State Investments for NZ$335 million, following regulatory approvals.

The Maui natural gas pipeline which transports around 78% of all natural gas produced onshore and offshore New Zealand is the largest high pressure transmission pipeline in the country and runs about 307km.

Maui Development, a joint venture company between Shell (83.75%), OMV NZ (10%) and Todd Energy (6.25%), has been operating the pipeline for over 35 years.

The pipeline was built exclusively for delivering gas from the Maui natural gas field in the 1970s but in more recent times has transported gas from multiple Taranaki gas fields since an Open Access Regime was established in 2005.

Shell said the future of the Maui pipeline has been under consideration for a long time and is separate from the review of the Shell New Zealand business.

In December 2015, Shell announced that it is reviewing assets in New Zealand as part of its strategy to focus on large growth potentials, including deepwater and integrated gas growth opportunities.

The supermajor has three major exploration and production assets in the Taranaki region, and is major shareholder (83.75%) of the Maui gas and condensate field. Shell also has 50% share in Kapuni, New Zealand's oldest gas and condensate field and 48% interest in the Pohokura field.

Image: Maui pipeline/ Maui Development

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