29 Oct 2011

Vector not liable for costs from Maui gas leak - Mackenzie

4:41 am on 29 October 2011

Vector says it is not liable for any costs from the Maui gas leak, which it manages.

The Maui gas pipeline has been closed since Monday night, affecting supplies to energy generators and large users.

Vector held its annual meeting in Auckland on Friday afternoon.

While chief executive Simon Mackenzie says the company's legal advisors say there is no liability, he refuses to say what compensation might to paid to its customers, which include energy retailers, commercial and industrial users.

But Mr Mackenzie says the financial impact from the leak is small.

"Obviously the volumes going through that will be reduced or curtailed, so the revenues will not flow from that period of time.

"Realistically if it's a week of time without that revenue coming through, that impact is largely immaterial in respect of the overall company."

Looking ahead, Vector expects full year gross earnings to be slightly above the analysts average of $610 million.

Vector's shares rose 2 cents to $2.55 on Friday.