In the largest supply deal of its growing unregulated portfolio,Reliant Energy Retail Group announced yesterday it has inked ClarkRefining & Marketing’s Port Arthur, TX, hydrogen complex to along-term supply deal worth a potential 43.8 Bcf/year.

No financial terms of the deal were disclosed. Under the termsof the contract, which has been in effect since March 1, Reliantbegan supplying gas to the Clark Refining complex at an initialannualized rate of more than 21.9 Bcf/year. The facility willreceive supplies through multiple pipelines in the Port Arthur areato increase reliability and cost effectiveness, Reliant said. Thecompanies expect the supply rate to increase once the facility iscompleted in 2001.

“This contract is especially significant because it is along-term contract, which is the result of lengthy discussions andconfidence in Reliant Energy Retail’s abilities to work as anenergy partner with large end users such as Clark Refining &Marketing, Inc.,” said Rollie Bohall, senior vice president,commercial and industrial accounts, Reliant Energy Retail Group.

Focus on unregulated operations has been at the forefront ofReliant’s actions over the past several months. They have announcedseveral retail and wholesale marketing deals as well as enteredinto asset management partnerships with multiple companies. Theunregulated focus has grown so prevalent that earlier this year,Reliant said it was looking for buyers for many of its well-knowntransportation systems such as NorAm, Arkla and Minnegasco (seeDaily GPI, March 13).

For the refining company, Reliant offered a chance to lock incompetitively-priced load for an extended length of time. “FromClark’s perspective, having in place a competitive, long-termnatural gas contract is strategic to our business,” said DonKuenzli, Plant Manager at Clark’s Port Arthur Refinery. “ReliantEnergy’s creativity in developing our agreement, coupled with theirfirm commitment to provide a high level of service, seemed to makethem a solid choice as a service provider to Clark.”

An unregulated arm of the Reliant Energy, the Reliant EnergyRetail Group provides a wide range of natural gas, electricity, andenergy services to business and residential customers inderegulated energy markets.

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