Sequent Energy Management, the wholesale marketing and asset optimization arm of AGL Resources Inc., has signed a one-year agreement to manage Chesapeake Utilities Corp.’s upstream transportation and storage entitlements and serve as the utility’s primary supplier. Chesapeake utilities uses about 5.5 Bcf/year.

Chesapeake Utilities, a diversified utility company, distributes natural gas to 38,000 residential, commercial and industrial customers in Delaware and Maryland on the Delmarva Peninsula.

Chesapeake solicited bids and signed on with Sequent when a three-year contract it had with another asset manager expired, said Jim Moore, Chesapeake’s director of natural gas distribution. Under the agreement Sequent will have the right to use all of Chesapeake’s upstream pipeline and storage entitlements and will be the primary gas supplier for the utility, he told NGI.

Sequent, based in Houston, serves as asset manager for clients, including marketers, retail aggregators, municipalities and large industrial customers primarily in the eastern half of the United States. The company also is active in producer services, wholesale marketing and risk management. For the year ended December 31, 2003, Sequent sold an average physical gas volume of 1.75 Bcf/d, an increase of 26% over 2002.

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