12 February 2025

After being given clearance by the Commerce Commission at the end of last year, Elgas has just concluded the purchase of Vector’s LPG assets including its Ongas business and its 60.25 per cent controlling share in Liquigas.

The commission said it looked at potential impacts on national wholesale and distribution of LPG, as well as regional retail markets.

"Our investigation found that, while Elgas and On Gas are both significant suppliers of LPG, the merged entity is likely to continue to face competitive constraint from other LPG suppliers in the relevant wholesale and retail markets," commission chair John Small said.

"As a result, we are satisfied that the merged entity is unlikely to be able to significantly increase prices, or reduce quality, in any of those relevant markets."

The $150 million purchase means Vector is exiting from the LPG wholesale and retail gas business, while retaining its natural gas distribution pipelines.

Vector is no longer represented on the GasNZ board.

Previously Ongas and Elgas were the third and fourth biggest players in LPG by market share. According to Elgas’s Commerce Commission application, the merged entity will now be the second largest player in the market behind Rockgas and ahead of Genesis Energy.