Update: Sale of Kleenheat east coast LPG operations

The Australian Competition and Consumer Commission (ACCC) has today announced further market inquiries regarding the planned sale of Kleenheat Gas’ east coast LPG distribution business to Elgas Limited.

Kleenheat Gas announced its agreement to sell its liquefied petroleum gas (LPG) distribution business in Victoria, South Australia, Queensland, New South Wales, ACT, and Tasmania to Elgas Limited (Elgas) in April this year.

The sale agreement includes Kleenheat Gas’ customer and supplier lists, contracts and assets associated with the company’s LPG distribution business in these states.

Elgas has made divestment undertakings to the ACCC, designed to address the ACCC’s preliminary competition concerns in particular regional areas of Victoria and New South Wales, and in the ACT.

Specifically, Elgas has agreed to on-sell certain parts of the Kleenheat business in those areas, including depots and associated assets, certain customer contracts and customer assets, and contractual agreements held between Kleenheat and dealers, commissioning agents, contractors, and suppliers to Origin Energy and Renegade Gas, trading as Supagas (Supagas) as follows:

Kleenheat’s LPG business in and around areas of Swan Hill, Maryborough, and Warrnambool  in Victoria to Origin Energy;

  • Kleenheat’s LPG business in and around areas of Tamworth, Griffith, Dubbo, Nowra, Stroud, Moama, and Kempsey in NSW to Supagas; and
  • Kleenheat’s LPG business in Canberra in the ACT to Supagas.

The ACCC will now undertake further market inquiries for a one week period, seeking feedback to assist it in its consideration of the proposed sale, and the proposed divestments by Elgas to Origin Energy and Supagas.

Kleenheat Gas will continue to operate as normal during the sale process, 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 www.kleenheat.com.au.