Marathon Oil Corp. on Wednesday announced an agreement to supply more than 60 Bcf of natural gas between 2009 and 2018 to Alaska-based utility ENSTAR Natural Gas Co. Financial details were not disclosed.

ENSTAR, a subsidiary of Michigan-based SEMCO, delivers gas to about 327,000 customers in Alaska. Earlier this year, it said it was considering importing liquefied natural gas to deal with projected shortages in the southeastern part of the state (see Daily GPI, May 23). The utility relies on contracts with gas producers for its supply, and it said in May it had enough gas to supply all of its customers through 2009.

Overall pricing under the new contract is indexed to prices at the Henry Hub, Marathon said. The agreement is subject to approval by the Regulatory Commission of Alaska.

“Marathon has been a key supplier of natural gas to south central Alaska for more than 50 years, and this contract, as structured, will enable us to continue to meet the energy needs of ENSTAR’s residential and commercial customers throughout the region,” said John Barnes, manager of Marathon’s Alaska operations. “We have continued to invest in exploration and development activities, pursue new gas pipelines and open access transportation options, and work with business partners as well as local and state agencies in seeking innovative solutions that will enable the region to realize its full resource potential and to fuel its ongoing economic development.”

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