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Alaska agency approves $60M sale of Fairbanks gas utility

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Alaska agency approves $60M sale of Fairbanks gas utility

The Alaska Industrial Development and Export Authority, or AIDEA, unanimously voted to approve its $60 million sale of Pentex Alaska Natural Gas Co. to the Interior Gas Utility of Fairbanks, Alaska, the Fairbanks Daily News-Miner reported Dec. 8.

The board of the Interior Gas Utility, or IGU, previously authorized its acquisition of Pentex, a move that AIDEA praised in a Dec. 6 news release. "After more than 11 months of in-depth due diligence and negotiations, we are now much closer to fulfilling the goals of the Interior Energy project," said Dana Pruhs, AIDEA board chairman, in the release.

The deal also includes IGU's acquisition of Fairbanks Natural Gas LLC, a liquefaction facility in Cook Inlet, and a trucking company that would deliver LNG to Fairbanks. The approval also allows for a finance agreement for the development of the Interior Energy project and the extension of IGU's credit, according to the report.

The deal, expected to close in April or May of next year, would allow Alaska to have a state-controlled unified gas utility that could result in lower costs for residents.