Furie signs new gas sales agreements – September 26, 2021
Contracts with Chugach Electric and IGU could allow additional gas supplies where possible at an agreed price and volume
for oil news
Furie Operating Co. signed new gas supply agreements with the Chugach Electric Association, based in Anchorage, and the Interior Gas Utility in Fairbanks. Furie is wholly owned by HEX Cook Inlet LLC, owner and operator of the Kitchen Lights gas field in Cook Inlet. Neither of the two supply agreements commits to specific volumes of gas to be delivered, nor to gas pricing. The concept is to allow the purchase of Fury gas at an agreed price and volume, if the opportunity arises. While the Chugach Electric supply agreement requires approval from the Alaska Regulatory Commission, IGU’s board of directors approved IGU’s gas supply contract at its meeting of board of directors on September 14.
IGU General Manager Dan Britton told the IGU Board of Directors that the Furie contract could come into effect if it was possible to purchase gas from Furie at a competitive price, in order to strengthen IGU’s Liquefied Natural Gas Inventory – IGU converts Cook Inlet gas to LNG and then stores the LNG at Fairbanks and the North Pole, to supply gas delivered to customers via pipelines. IGU has a gas supply contract with Hilcorp Alaska for firm supplies at an agreed price, with options for additional gas if required.
In an RCA filing, Chugach Electric told the commission that the primary purpose of its new Furie contract is to support power generation for economical power sales to the Fairbanks Golden Valley Electric Association utility company, and to supplement existing gas supplies as needed, to meet a firm electrical system. load requirements. The sale of economical energy involves the sale of electricity at attractive prices from one public service to another, via the Railbelt electricity transmission network.
Chugach Electric and Furie have terminated a gas supply agreement that was signed in March 2017, Chugach Electric told the committee. The deal provided for interruptible gas supplies until March 31, 2033, the contract end date, with firm supplies starting April 1, 2023. The utility said that to offset the firm gas supply in the deal terminated, it exercised a right to additional gas supplies from Hilcorp under the existing supply agreement with Hilcorp. Chugach Electric has asked RCA to approve the new Furie contract by November 1 – the contract would end on March 31, 2023.
Furie supplies Kitchen Lights gas under contract to Anchorage-based Enstar Natural Gas Co.
Did you find this article interesting?
Click here to subscribe to Petroleum News for as low as $ 89 per year.