Alaska's largest natural gas utility being sold for $800M
ANCHORAGE, Alaska (AP) — The owner of the largest natural gas utility in Alaska said it is selling the company to Canada-based TriSummit Utilities Inc. for $800 million.
AltaGas Ltd. announced Thursday that the sale includes Anchorage-based ENSTAR Natural Gas, associated pipelines and ENSTAR’s majority ownership in a gas storage facility, the Anchorage Daily News reported. AltaGas, also based in Canada, acquired Enstar in 2012.
TriSummit has about 133,000 customers in Canada. ENSTAR, which has about 150,000 customers in Anchorage and parts of south-central Alaska, has had about 1% annual growth in customers in recent years, AltaGas has reported.
AltaGas said the sale, in part, will allow the company to reduce debt and make “higher growth investments” in other operations, the company's president, Randy Crawford, said in a statement.
The sale is subject to regulatory approval. The companies expect it to close by early next year.
TriSummit in a statement said it plans to “retain all of ENSTAR’s dedicated employees and hire new Alaska employees to perform certain functions currently performed out of state.” ENSTAR Natural Gas has about 200 employees.
TriSummit President and CEO Jared Green once ran ENSTAR.
“Our top priority is ensuring a smooth transition, maintaining the strong relationships ENSTAR has in its communities, and to fully support ENSTAR as they continue to provide customers with safe, reliable and affordable service,” Green said in the statement.
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