Origin Energy Limited (ASX:ORG) controlled Contact Energy Limited (NZE:CEN) will purchase the diesel fired Whirinaki plant in New Zealand for $33 million from the government.
Contact will also acquire about four million litres of diesel stored on site when the transaction is finalised within weeks.
CEO of Contact, Dennis Barnes, says the plant provides greater flexibility and fuel security to the company’s existing generation capacity.
Contact developed the plant which was operated by the government prior to Contact deciding to buy it.
Origin holds a 52.76 per cent interest in New Zealand listed Contact Energy.
In the 2011 financial year Origin Energy reported a net profit of $248 million.
