Glencore-backed energy group CNG reviews options amid supplier collapses

24 September 2021, 14:06 | Updated: 24 September 2021, 16:19

A commercial energy supplier backed by Glencore, the FTSE-100 commodities trading giant, has drafted in City advisers to undertake a strategic review amid the turmoil in Britain's gas supply market.

Sky News has learnt that CNG Group, which is based in Yorkshire, has hired Interpath Advisory to run a process that could involve a break-up or outright sale.

The company, which operates about 46,500 meter points across the UK, is said to be seeking expressions of interest from potential investors or acquirers in the coming weeks.

Live updates from around the UK on the energy crisis

Glencore, which ranks among Britain's biggest listed companies, is "a long-standing supplier [to] and shareholder in the group", according to CNG's most recent set of accounts filed at Companies House.

CNG supplies small and medium-sized businesses directly, and also provides shipping services and wholesale gas to retail suppliers operating in the market.

The collapse of half a dozen players during the last 10 days, which has been largely the consequence of soaring wholesale prices, has sparked an unprecedented crisis across the sector and demands for government intervention.

One market insider said they expected CNG to be broken up into its separate divisions and sold.

CNG said in a statement: "As a responsible board, we are taking the opportunity to consider our strategic options.

"There is no burning platform, but ongoing developments in the energy market mean that it makes sense to assess the best way forward for the various parts of our business."

A Glencore spokesman declined to comment.