Gas Utility working toward purchase of FNG parent company
The Interior Energy Project, which aims to bring natural gas to Fairbanks and North Pole, is close to sealing a deal for a merger with Fairbanks Natural Gas - but the gas utility board is still somewhat divided as other supply options prove tempting.
The Borough Assembly got an update from project stakeholders late last week.
The sale of Pentex from the state to the Interior Gas Utility would create one consolidated natural gas utility within the Fairbanks North Star Borough.
A proposal from Siemens includes the production of a new liquid natural gas plant near Houston, instead of expanding the Titan plant in Point Mackenzie.
Other proposals include utilizing propane for outlying areas that may be difficult to service with natural gas.
This proposal led to some confusion as to whether propane was replacing the goal of bringing in more natural gas, or just supplementing it.
General Manager of IGU, Jomo Stewart, is optimistic that the sale will be finalized, but hopes the 'Regulatory Commission of Alaska' approval process does not cause them to miss their closing date.