Sempra Inks Optimization Deal with Connecticut Gas
Significantly increasing its presence in the Northeast, Sempra
Energy's marketing arm, Sempra Energy Trading, agreed Thursday to
manage the supply and delivery of gas to serve Southern Connecticut
Gas Co.'s 158,000 customers. Terms of the one-year agreement were
not disclosed. Sempra will begin April 1.
"By helping Southern Connecticut improve its service, we will be
more able to help our own East Coast customers. The East Coast
has, is, and always will be one of our company's main focus areas."
Sempra said. The company declined to say if similar deals were on
Sempra will manage and optimize transportation and storage
contracts with Algonquin Gas, Texas Eastern, Tennessee Gas,
Iroquois, CNG, Transco, and National Fuel. It will manage about 37
Bcf of supply, 4 Bcf of storage capacity and 162 MMcf/d
transportation capacity. The contract excludes Southern
Connecticut's LNG and propane peaking facilities.
"Working with a major national entity in the energy trading
market, our contract with Sempra Energy Trading gives us the strong
potential to produce cost savings for our customers and increased
value for shareholders," said Sal Ardigliano, a Southern
Ardigliano views this move as a step to the next level. "We've
been doing this with our storage capacity for about four years."
Over that span, Southern Connecticut worked with companies such as
TPC, and Dynegy. "We had success," Ardigliano continued, "and now
it's time to put all the assets into the pot." He also said
Southern Connecticut chose Sempra because it cleared all the
hurdles during the selection process, including proven reliability,
ability to work cooperatively, as well as extensive savings
results. He said the one-year deal is an evaluation period, and
there is no guarantee Southern Connecticut will re-sign with Sempra
for another contract. "We don't make deals for eternity with
anybody. Competition is too much of a good thing."
The agreement still requires approval from the Connecticut
Department of Utility Control, but Southern Connecticut expects it
to be done before the April 1 start date.
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