AIG Financial Products Corp.(AIG-FP) on Tuesday completed its 50% partnership purchase of Tenaska Energy's closely held natural gas marketing companies. The transaction, for an undisclosed amount, was announced last month (see Daily GPI, March 16).
The joint venture gives AIG-FP a half interest in Omaha-based Tenaska Marketing Ventures, Tenaska Marketing Canada and Tenaska Gas Storage, known collectively as TMV. The partnership combines the physical gas marketing expertise of TMV, which ranks among the top 10 gas marketing companies in North America, with AIG-FP's financial strength and risk management capabilities. Tenaska and AIG-FP will jointly guarantee the venture's payment obligations.
"AIG-FP's financial strength, business contacts and financial products expertise in global capital markets, combined with TMV's physical energy capability, will enhance efforts to better serve customers, plus create a strong platform for growth in the marketplace," said TMV President Fred Hunzeker. "TMV customers will see no change in our basic approach to business as we continue to focus on providing value and managing their risk."
TMV in 2006 was ranked by Forbes magazine as the 16th largest private company in the United States based on 2005 revenues. According to NGI's Top North American Gas Marketers list for 3Q2006, Tenaska is the tenth largest marketer, moving 4.3 Bcf/d of natural gas.
AIG-FP is a wholly owned subsidiary of insurance giant American International Group Inc. Founded in 1987, AIG-FP was one of the first companies focused principally on the derivatives markets in the United States.
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