Following word of the failed Enron Corp./Dynegy merger, fallout continues to rock the nation in more ways than one might expect. AGL Resources Inc. reported that Sequent Energy Management, its asset optimization subsidiary with a large portfolio of assets under management in the Southeast, has reached an agreement with Enron for early termination of an asset management contract related to Virginia Natural Gas (VNG), also a wholly owned subsidiary of AGL Resources.
Under the original two-year asset management agreement that became effective in Dec. 2000, Enron was authorized to manage a comprehensive portfolio of natural gas supply, transmission and other energy services for Sequent, on behalf of Virginia Natural Gas. Under the termination agreement, AGL said that Sequent will assume the role of asset manager for VNG, effective Dec. 1, 2001.
“We are pleased that we have reached a mutually satisfactory agreement with Enron to ensure that VNG customers continue to receive the benefits that a strong asset manager can provide,” said Richard T. O’Brien, executive vice president of AGL Resources. “Although our exposure to the Enron situation is minimal, this agreement will further mitigate any future exposure with regard to management of the VNG assets.”
Sequent is a Houston-based entity focusing on asset management and the wholesale trading, marketing gathering and transportation of natural gas. Sequent is rapidly positioning itself as a niche player in the Southeastern U.S. natural gas market. More information on the company can be found at www.sequentenergy.com.
“With the return of management responsibility for the VNG assets and gas supply contracts to Sequent, Enron has helped to ensure that its financial difficulties will not impact VNG and its customers,” said Rick Duszynski, CEO of Sequent Energy Management. “Additionally, as a large regional natural gas marketing company, Sequent will be able to seamlessly step into the asset manager role and continue to provide these services to VNG as well as others throughout the Southeast. We appreciate Enron’s cooperation in making this a smooth transition.”
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