RCA approves Pentex acquisition of Fairbanks Natural Gas

Petroleum News

The Regulatory Commission of Alaska has approved Pentex Alaska Natural Gas Co.’s application to acquire Fairbanks Natural Gas LLC. The commission said Aug. 26 that it granted the expedited approval requested in the June 10 application so that construction of proposed new facilities would not be delayed, and so that new equipment such as large compressors, pumps, liquefied natural gas manufacturing equipment and LNG tankers could be ordered for next summer.

Pentex told the commission that it plans 115 miles of new distribution lines and expansion to 5,800 customers by 2013, an expansion which will cost more than $35 million. Fairbanks Natural Gas was serving some 580 customers when the application was filed in June. (See story in July 11 issue of Petroleum News.)

The company provides natural gas to Fairbanks from Cook Inlet. The gas is liquefied and trucked to Fairbanks.

Pentex told the commission that Fairbanks Natural Gas has received inquiries for gas service from a number of new large customers including Lowes, Lithia Motors, Fred Meyer, the Fairbanks School District and new residential complexes.

Neither the name nor the day-to-day management of Fairbanks Natural Gas will change, Pentex told the commission.

The company said it plans to purchase two LNG cryogenic trailers and lease two others, and plans to add about 30 miles of distribution main per year.