New Zealand Gazette – 1997 – No. 177

Page 4222

✨ Natural Gas Corporation Financial Statements



4222 NEW ZEALAND GAZETTE No. 177

2. Income Tax

$Thousands
The Income Tax Expense has been calculated as follows:
Surplus before Taxation 33,625
Income Tax at 33% 11,096

3. Gas Entitlements

$Thousands
Take or Pay Gas
Balance as at 1 July 1996 68,797
Maui Take or Pay 651
69,448
Advance Paid Gas
Balance as at 1 July 1996 151,400
Less Cost of Gas Sold (11,665)
139,735
209,183

NGC’s entitlements to gas are:

a) Take or Pay Gas Contract

NGC has contracts with the Crown, whereby it has committed to purchase gas in annual contract quantities. The remaining commitments from 1 July 1997 to 30 September 2009 are 299.5 petajoules (1996, 327.6 petajoules). The take or pay gas asset of $69.4 million noted above represents gas paid for but not taken under this contract.

b) Advance Paid Gas

NGC purchased, from the Crown, 262.5 petajoules of Maui gas to be delivered in annual scheduled entitlements up to 2009 for a single advance payment. This gas is referred to as Advance Paid Gas and requires no further payment to the Crown when delivery is taken except for payment of the energy resource levy. NGC takes approximately one unit of Advance Paid Gas for every two units purchased under its take or pay contract with the Crown.

In addition to the 262.5 petajoules noted above, NGC obtained access at the same time to an additional 79.8 petajoules of gas paid for but not taken by the Crown under its contract with Maui Mining Companies (refer 3(d) below).

The 262.5 petajoules and the 79.8 petajoules were purchased for a single payment of $235 million. As at 30 June 1997 NGC had 167.3 petajoules (1996 180.9) of the Advance Paid Gas remaining.

c) Gasbank I

NGC has entered into an agreement with Fletcher Challenge, whereby Fletcher Challenge undertook to purchase from NGC, if requested, all of NGC’s Maui gas paid for but not taken in each contract year up to the year 30 September 1996. NGC, at its option, will be able to repurchase all or any of these gas entitlements at the original selling price plus holding costs. This arrangement has now concluded and NGC has given notice that it will repurchase the 12.3 petajoules of gas under this arrangement. Final payment for this gas must be made by 20 October 2000.

d) Gasbank II

In September 1992 NGC sold its entitlements to the 79.8 petajoules of Gasbank II, (referred to in 3(b) above) to Fletcher Challenge for $22 million. NGC retains the right at all times to uplift all or any part of the 79.8 petajoules for the original price of $22 million plus holding costs. In the event of any redetermination of the Maui field resulting in a reduction in NGC’s annual contract quantities, Fletcher Challenge will transfer back at no cost to NGC, the Gasbank II entitlements equivalent to the amount by which NGC’s annual contract quantities are reduced up to a maximum of 79.8 petajoules.



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✨ LLM interpretation of page content

🏭 Natural Gas Corporation Financial Position Statement (continued from previous page)

🏭 Trade, Customs & Industry
Financial Position, Natural Gas Corporation, Gas Wholesaling, Gas Information Disclosure Regulations, Income Tax, Gas Entitlements