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Alaskan Regulators Clear Way to Sell Enstar, State’s Largest Natural Gas Utility
Enstar Natural Gas Co., Alaska’s top natural gas distributor, is ready to be sold to yet another Canadian firm.
Calgary-based energy infrastructure firm AltaGas Ltd. is bowing out, and Calgary’s TriSummit Utilities Inc. is moving in with the final approval secured from Alaskan regulators.
The sale includes AltaGas’ 100% interest in Enstar, which has about 150,000 customers. It also includes the Alaska Pipeline Co., which operates transmission and distribution pipelines for Enstar and the company’s 65% indirect interest in Cook Inlet Natural Gas Storage Alaska (Cingsa), a commercial state-regulated natural gas storage facility.
Enstar and Cingsa will continue to operate as standalone utilities and remain headquartered in Alaska, according to AltaGas.
AltaGas previously said the value of the deal with TriSummit was $800 million.
TriSummit, which serves about 133,000 customers across Canada, has said it plans no changes for Alaska service or staffing. Enstar employs about 200 full-time workers. The move would be TriSummit’s first into the U.S. market.
The approval was the last remaining material regulatory closing condition to be satisfied, AltaGas said. The deal is expected to close at the end of February.
Following the Alaska asset sale, AltaGas would retain its U.S. gas utility presence in Washington, DC, as well as Maryland, Michigan and Virginia. AltaGas also exports natural gas liquids (NGL) from Pacific coast terminals. The NGL exports originate in the Montney Shale formation.
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