BOC acquires Shell LPG business in New Zealand

BOC, supplier of gases, industrial and safety products in New Zealand, has signed an agreement with Shell to purchase Shell New Zealand's (Shell NZ) commercial LPG business, including its shareholding in Liquigas.

The purchase is subject to clearance by the Commerce Commission, and a decision is expected in early 2007.

"LPG is a key part of BOC's business globally, with annual revenues of more than NZ$1.1 billion, and is integral to our growth strategy. This multimillion-dollar acquisition represents a significant commitment to increase the BOC LPG business and its capabilities," said Sue Dale, BOC's general manager in New Zealand.

"It also increases BOC market share and secures its position as a significant market player in New Zealand."

The major uses of LPG are automotive and non-automotive including retail, residential, industrial and commercial use. According to the LPG Association of New Zealand, the size of the total LPG market is over 160,000 tonnes per year and now accounts for some 1945 GWh of electricity displacement.

If Commerce Commission clearance is obtained, a transition program will be put in place. BOC is working closely with Shell on a smooth transition between Shell and BOC.