Gas supply from the Maui gas pipeline, operated by infrastructure and gas distributor Vector Ltd. (VCT.NZ), has been re-established to essential services and most dairy factories, Vector said Wednesday.

The pipeline on New Zealand's North Island was closed Tuesday after a leak was detected late Monday. Among the business affected, more than a dozen of dairy giant Fonterra Co-Operative Group Ltd.'s processing plants were closed in the Bay of Plenty, Waikato and Northland regions. Officials from Fonterra weren't immediately available for comment but The New Zealand Herald reported Wednesday that the gas leak meant farmers were throwing away NZ$20 million of milk a day.

Earlier Wednesday, Vector Chief Executive Simon McKenzie said excavations were underway in order to repair the pipeline but work was proceeding with extreme caution in order to avoid compounding the problem.

Regarding the expected repair time, Vector said it would be "a matter of days."

All customers, including residential customers "are urged to be conservative in their use of gas until further notice," Vector said in its latest statement.

The Maui gas pipeline is owned by Maui Development Ltd., a joint venture among several oil and gas companies operating in New Zealand, including OMV New Zealand Ltd., a unit of Austria's OMV AG (OMV.VI), and Todd Energy. McKenzie noted that it is the first problem the pipeline has had in 30 years.

-By Rebecca Howard, Dow Jones Newswires; +64-4-471-5990; rebecca.howard@dowjones.com

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