KeySpan LNG LLC, a unit of KeySpan Energy Development Corp., announced Friday it has purchased Duke Energy’s Algonquin liquefied natural gas (LNG) facility, which operates a 600,000-barrel storage and receiving terminal in Providence, RI, for an estimated $28 million.

The acquisition of the Algonquin plant “complements KeySpan’s existing gas distribution business and will make a significant contribution to our earnings,” said Robert B. Catell, chairman and CEO of parent KeySpan Corp. The LNG facility will play a “critical role in meeting peak-day gas supply needs” in the Northeast region.

Duke Energy indicated the sale was part of its continuing effort to maximize shareholder value, as well as “optimize the value of our energy businesses.”

The storage capacity of the Algonquin LNG unit is fully contracted under long-term arrangements with three Northeast gas distribution companies, according to KeySpan. The largest customer is KeySpan Energy Delivery-New England, a subsidiary of Brooklyn, NY-based KeySpan Corp., which has contracted for more than half of the facility’s storage capacity. The other customers are Consolidated Edison of New York and Providence Gas in Providence, RI, the company said.

Algonquin LNG, which has been in operation since 1973, completed major upgrades to the Providence facility in 2000, mostly “expansion-related modifications,” said KeySpan spokesman Shawn Rosvold. He noted the facility has the potential to be further expanded in the future. It has 11 employees.

KeySpan is the largest distributor of natural gas in the Northeast, serving approximately 2.5 million gas customers.

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