Conditional sale agreement reached for decommissioned asset

Channel Infrastructure (CHI) has entered into an Asset Sale Agreement with US-based Seadra Energy Incorporated (SE) to potentially purchase permanently decommissioned parts of the former refinery.

SE has six months to consider the purchase of certain assets in exchange for a non-refundable option payment of US$4 million, with the purchase price for the assets agreed between the parties being US$33.875 million.

If SE chooses to exercise the option, the balance of the purchase price will be paid in instalments throughout the expected 12-month deconstruction period.

Channel Infrastructure CEO, Rob Buchanan, says the agreement has the potential to contribute to New Zealand’s wider decarbonisation efforts and energy transition.

Channel will continue to evaluate opportunities in respect of other decommissioned parts of the former refinery.