Pentex Proposes Interior Alaska Natural Gas Solution to Cut Interior Residents Heating Cost by 50 Percent
Fairbanks, AK, January 11, 2013 – Pentex Alaska Natural Gas Company, LLC (“Pentex”) and its subsidiaries, Fairbanks Natural Gas, LLC (“FNG”) and Polar LNG, LLC (“Polar”), announced today that they have submitted a comprehensive response to the Alaska Industrial Development and Export Authority (“AIDEA”) “Request for Letters of Interest for North Slope Liquefied Natural Gas Plant” (“RFLOI”).
Pentex and its subsidiaries are steadfastly committed to bringing increased availability of lower cost natural gas to the Interior of Alaska. The RFLOI issued by AIDEA and endorsed by Governor Sean Parnell provides the opportunity for a public-private partnership between Pentex and the State of Alaska resulting in abundant, lower cost, environmentally friendly natural gas and propane to the Interior and other areas of Alaska. Pentex’s comprehensive turn-key proposal addresses the acquisition and liquefaction of natural gas and propane on the North Slope, includes the transportation of LNG and propane to the Interior, storage & vaporization of the LNG, and the transmission and distribution of natural gas to homes, businesses and industrial users.
The Pentex Proposal projects natural gas rates delivered to customers’ homes and businesses in Fairbanks to start at $15.98 / MCF (Thousand Cubic Feet) in 2015 and rapidly decline to $13.00 / MCF as the natural gas distribution system expands.
“I’m encouraged to see several responses to the Governor’s initiative, including FNG from the private sector with a proposal for a public-private partnership” said City of Fairbanks Mayor Jerry Cleworth.
“Our community can't wait any longer for energy relief. We must make progress this session and it’s encouraging to see movement towards lowering Fairbanks’ energy costs, which is the Chamber’s number one priority again this year,” said Fairbanks Chamber of Commerce Executive Director Lisa Herbert.
“Given FNG has recently entered into a Stipulation with the Attorney General and Fairbanks North Star Borough to become fully rate regulated, filing a rate case by June 30, 2014 and Polar is proposing cost of service rates, consumers of natural gas can be assured to receive the full benefit of State of Alaska involvement and complete transparency in the process,” said Pentex President Dan Britton. “The proposal submitted by Pentex provides the earliest and greatest opportunity for energy price relief to the Interior of Alaska, while providing opportunity for energy security and price relief to other areas of Alaska as well.”
“Now that FNG will be a fully regulated utility, I'm pleased with the interest they've shown in responding to the Governor's effort toward energy cost relief,” said Diane Hutchison Presiding Officer Fairbanks North Star Borough Assembly.
Pentex, through its subsidiaries FNG and Polar, has been providing LNG and natural gas service to Fairbanks and the Talkeetna Lodge since 1998. FNG owns and operates approximately 70 miles of underground natural gas distribution piping serving approximately 1,100 customers today. Polar has been developing a North Slope liquefaction facility since 2006 and has a long term gas supply, land and necessary permits to begin construction immediately. Pentex is advised by Marathon Capital, LLC.
Posted: January 15, 2013