The Alaska Industrial Development and Export Authority (AIDEA) has agreed to buy Pentex Alaska Natural Gas Co. LLC and its assets, including Fairbanks Natural Gas (FNG), under AIDEA’s Development Finance Program. AIDEA is authorized to invest up to $54 million in the project, which includes the $52.5 million purchase price, plus working capital. “We expect the Pentex acquisition to be a short-term strategic investment that can play a significant role in helping achieve long-term success for the Interior Energy Project,” said AIDEA Executive Director John Springsteen. “This acquisition will promote an integrated gas distribution system that can be built and operated in a more efficient manner for the benefit of Interior Alaska residents and businesses.” FNG will be in a position to work with local entities in the Fairbanks North Star Borough to integrate the construction and operation of a gas distribution system, AIDEA said. “The ultimate goal of this transition will be a single, locally controlled utility serving the Interior,” Springsteen said. Because of AIDEA’s lower cost of capital, AIDEA expects to be able to reduce the price of gas to existing FNG customers by 13.3%. This will provide energy relief to Interior residents by the upcoming winter, AIDEA said.
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Algonquin Weakness Continues as Demand Subsides Following Heatwave
Natural gas forwards prices were mostly higher for the period between June 8 and 11 as Nymex July futures strengthened on increasing power loads, but one Northeast point continued to weaken in the face of easing demand after this week’s heatwave.
Two BNK Wells Flowing Back in Oklahoma’s Caney Shale
BNK Petroleum Inc. said two wells in Oklahoma’s Tishomingo Field have been flowing back after hydraulic fracturing (fracking) operations, but one well is still cleaning up from heavy flooding in the state.
West Coast Rail Crude Oil Shipments Increasing, Says EIA
In response to declining in-region production, crude oil shipments by rail to the West Coast have increased during the past five years, the U.S. Energy Information Administration (EIA) said Tuesday.
U.S. Tops for Global Natural Gas Production, Consumption, Says BP
World natural gas production increased by 1.6% in 2014, four times the growth rate of global consumption (0.4%), with the United States recording the largest production growth at 6.1%, BP plc reported Wednesday.
Northern Natural Enacts Force Majeure in West Texas
Northern Natural Gas Co. announced a force majeure event on its Spraberry to Gaines County line near Midland, TX, because excavation was taking place near its pipeline.
Gulfport Spending Spree Continues With Sizeable Utica NatGas Acquisition
Gulfport Energy Corp. is acquiring 35,325 net Utica Shale acres from privately held American Energy Utica LLC (AEU) for nearly $407 million in another deal that consolidates its position in the play’s dry natural gas window.
McClendon’s Appalachian Business Eyeing Independence by Year’s End
American Energy Appalachia Holdings LLC (AEA), an affiliate within Aubrey McClendon’s platform of U.S. onshore operators, is changing its name and plans to become fully independent by the end of the year.
Firm Physical Natgas Outpaces Futures Gains
Physical natural gas values for Thursday delivery and the near-month futures contract continued to charge forward and post gains in Wednesday’s trading on a burst of summer heat. Hefty increases in next-day peak power made purchases for power generation attractive, and only a handful of points fell into the loss column.
People
Commissioner David Porter was unanimously elected chairman of the Railroad Commission of Texas (RRC). Commissioner Christi Craddick said at the RRC’s Tuesday meeting, “I am pleased to turn over the responsibilities of chairman to my colleague Commissioner David Porter. After working alongside him for the past two and a half years, I know his knowledge, steady approach, and dedication to the agency will guide his leadership and keep the Commission on a path toward an even stronger future.” Porter said of the RRC, “…it is our job to make sure industry produces efficiently and economically, and does so in the safest, most responsible manner possible. We meet our responsibilities at the commission — we’ve been doing it for over a century — and I am honored to serve as chairman during this important time for our state.”
