Vector, operator of the natural gas pipeline in New Zealand's North Island, reported a rupture on its Maui pipes. The rupture happened at a considerable distance south of New Zealand Steel's Glenbrook and Taharoa operations.

The rupture led Vector Wednesday morning to call on all industrial users to stop using natural gas until the problem is fixed. Gas retail firm OnGas did not provide a timetable when the natural gas supply would resume.

The supply disruption affects operations of New Zealand Steel at its Glenbrook plant since it uses natural gas for operations. New Zealand Steel is owned by Australian steelmaker Bluescope (BSL AU).

However, the company's two cold mill lines, heavy plate processing, vanadium recovery and kilns are still running, and its Taharoa iron sands operations are not affected.

News of the natural gas interruption at the Bluescope's New Zealand Steel facilities caused shares of the company to drop 2.9 per cent to 85 Australian cents Wednesday.

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