ACCC clears sale of Kleenheat Gas east coast LPG business

The Australian Competition and Consumer Commission (ACCC) has announced that it will not oppose the sale of Kleenheat Gas’ east coast liquefied petroleum gas (LPG) distribution business to Elgas Limited (Elgas) after accepting undertakings from Elgas and Kleenheat.

Kleenheat Gas announced its agreement to sell its LPG distribution business in Victoria, South Australia, Queensland, New South Wales, ACT, and Tasmania to Elgas in April 2014.

The sale agreement includes Kleenheat Gas’ depots and associated assets, customer contracts and customer assets, and contractual agreements held between Kleenheat and dealers, commission agents, contractors, and suppliers in these states.

Clearance from the ACCC was the final step required to finalise the sale.

To address the ACCC’s competition concerns, Elgas has provided the ACCC with divestment undertakings that require Elgas to divest assets in specific regional areas of Victoria, New South Wales, and in the ACT to Origin Energy and Renegade Gas trading as Supagas NSW and Supagas QLD (Supagas).

Specifically, the divestment undertaking requires that Elgas on-sell Kleenheat’s LPG business:

  • in and around areas of Swan Hill, Maryborough, and Warrnambool in Victoria to Origin Energy;
  • in and around areas of Tamworth, Griffith, Dubbo, Nowra, Stroud, Moama, and Kempsey in NSW to Supagas; and,
  • in Canberra in the ACT to Supagas.

The divestments will occur at the same time Kleenheat completes the transaction with Elgas, which is expected to be on Friday 20 February 2015.

Kleenheat has also provided an undertaking to the ACCC to support the divestment process.
Kleenheat Gas’ LPG business in Western Australia and the Northern Territory, its national LNG operations, and its natural gas and electricity retailing businesses in WA are not part of the sale.

Kleenheat Gas will continue to operate as normal until completion of the sale, and is committed to providing customers with the same high-level of customer service and reliable supply they have come to expect.

We thank all Kleenheat Gas customers for their ongoing support, and we look forward to continuing to meet their gas needs.

For all enquiries related to Kleenheat Gas please contact the customer service team on 13 21 80, or visit