Yesterday afternoon the board of the Interior Gas Utility voted to agree on final terms for the purchase of Pentex Natural Gas Co. from the Alaska Industrial Development and Export Authority, thus enabling completion the Pentex purchase.
IGU can now combine with Pentex subsidiary Fairbanks Natural Gas to form a consolidated utility for the Fairbanks area. The purchase will also bring IGU ownership of the Titan liquefied natural gas plant near Point Mackenzie and a trucking operation for shipping LNG to Fairbanks.
IGU had previously approved the completion of the Pentex purchase, subject to AIDEA board approval of a letter of agreement altering some of the terms of the purchase and sales agreement. The AIDEA board, during its May 31 meeting, partially concurred with the letter of agreement but rejected terms that would have specifically accommodated changes to plans for expanding the LNG supplies for Fairbanks. AIDEA was concerned about the possible impacts of the changes on other aspects of the sale documentation and commented that the terms of the sale already accommodated the possibility of changes to the LNG development plan.
AIDEA has assured the IGU board that it will act in good faith in resolving any future difference of opinion over the appropriate arrangement for expanded LNG production. And IGU has accepted AIDEA's position.
- ALAN BAILEY
See story in June 17 issue, available online Friday, June 15 at www.PetroleumNews.com
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