GUERNSEY Gas could be sold. It is understood that staff were told about it on Thursday.
A spokesman for the International Energy Group, Guernsey Gas’s parent company, confirmed yesterday that another business had been in touch about a possible purchase, but would not divulge any further details.
‘The parent company of Guernsey Gas has received unsolicited enquiries from parties who may wish to acquire this and other IEG businesses in the Isle of Man, Channel Islands and Portugal.
‘These enquiries are being considered and there will be no further comment at this time.’
However, the announcement to staff that the company could be sold came just a day after the States noted the energy policy report last week, which Deputy Tony Spruce said was ‘pro-electricity’.
He failed with a sursis that would have delayed workstreams included within the report until further investigations had been carried out.
Speaking yesterday, Deputy Spruce said he believed the possible sale of the company could be down to the States decision.
‘This announcement illustrates the concerns I expressed during the energy policy debate.
‘The statement included within the policy strategy stated that a move towards an electricity-only island would see the demise of the oil and gas companies. That was bound to seriously undermine any confidence that an investor would have in our local oil and gas providers.
‘As an island we have a reason to be concerned about our energy provision. Guernsey Petroleum Distributors has closed its depot at Bulwer Avenue, Shell is selling to a French company, while Total has been experiencing shipping difficulties for many months and now Babcock & Brown [IEG’s owners] wish to divest themselves of Guernsey Gas.
‘The situation starkly illustrates somewhat earlier than I expected how important it is to maintain confidence in the provision of oil and gas because it will be many years if not decades before electricity can fill the gap currently provided by the oil and gas suppliers.
‘We need every energy source in this island and I think we should foster healthy competition and recognise that an energy mix is vital to a secure long-term energy strategy.’
Article posted on 1st July, 2008 - 1.00pm
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