Whanganui gas company GasNet has secured contracts in the Bay of Plenty to supply energy to new subdivisions.

Whanganui Mayor Annette Main and Whanganui District Council Holdings Ltd chairman Matthew Doyle announced on Friday that GasNet had secured agreements to provide gas network infrastructure to several major new subdivisions in Papamoa, near Tauranga.

Mr Doyle said that GasNet is installing about 4km of arterial main, running from a major transmission main through new routes past the new subdivisions of Golden Sands and Terrace Views.

"GasNet currently has about 10,000 connections in Whanganui and the addition of the Papamoa developments represents a significant increase in the business," Mr Doyle said.

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"Many of the developments are in the Government's new special housing areas but other opportunities are also opening up outside those areas. There are also potential opportunities to move into the Auckland market. In this way Whanganui can benefit economically from the growth in these areas."

He said GasNet had won the contracts with developers after offering a more cost-effective service than other suppliers.

Ms Main said the contracts show service from Whanganui can "surpass that of larger, multi-national companies".

Describing GasNet as a "relative minnow", she said it was now "successfully competing with First Gas which took over the Papamoa gas network from Vector".

"GasNet is now the preferred provider for a number of big developments in that area."

The company is the smallest gas operator in the North Island with 3 to 4 per cent of the market. GasNet is owned by Whanganui Gas, a subsidiary of a Whanganui District Council entity.