Claire Winder and Will Wright from Interpath Advisory were appointed Joint Administrators of Contract Natural Gas Limited (‘the Company’) on 17 December 2021.
Based in Harrogate, North Yorkshire, the Company formed part of the wider CNG group and provided gas shipping services to wholesale customers. The Company ceased trading on 30 November 2021 following a six week managed wind-down.
As a direct result of sharp increases in wholesale gas prices, general volatility in the energy market as a result of the global gas crisis and the failure of a significant number of the Company’s customers, the board of CNG group undertook a strategic review of both its wholesale shipping and retail divisions. However, no viable offers were received for the wholesale business and, following consultation with key stakeholders, the directors commenced a managed wind-down in order to transition the remaining customers to new gas shippers.
Claire Winder, Joint Administrator and Managing Director at Interpath Advisory, said: “These are unprecedented times for the energy sector. Sadly, the company was unable to sustain the loss of a significant proportion of its wholesale business as its customers entered into Supplier of Last Resort (‘SoLR’) processes.
“Our priority over the coming days is to assist customers and other stakeholders who will be impacted by the failure of the Company.”
Three other entities in the wider CNG Group, CNG Energy Limited, CNG Electricity Limited and CNG Central Services Co Limited entered into Administration on 30 November 2021.