"By expanding our LP Gas operations we increase our opportunities to offer a multi-fuel package to homes and businesses throughout the state," Origin's general manager for wholesale and trading, Karen Moses, said.

Under the terms of the agreement, Origin will acquire 100% of the business, which will continue trading under the Treston brand, with the same team of staff providing service to the local community.

Hylemit's location will also provide Origin with a strategic advantage as it will overlap with both its electricity and natural gas customer base in the region.

Moses said the Hylemit acquisition represents the latest expansion in Victoria for Origin Energy following the purchase of the electricity retail business of CitiPower in August 2002.