Seven Generations Energy Ltd. (7G) has entered into an agreement with Tenaska Marketing Canada and Tenaska Marketing Ventures (Tenaska), which will see Tenaska manage 7G's expanding natural gas transportation capacity on the Alliance Pipeline to the US Midwest.
Taking the lead
"Tenaska is a leading North American energy firm with the gas marketing expertise and market connections to help optimise the value of our growing sales in the US Midwest. This arrangement will strengthen our ability to market natural gas in one of the continent's largest energy markets," said Pat Carlson, 7G's Chief Executive Officer.
7G holds transportation capacity that grows incrementally over the next three years on Alliance Pipeline – a liquids-rich conduit that will allow the company to start flowing 250 million ft3/d of rich gas as of 1 December 2015. Transportation commitments step up to reach 500 million ft3/d in 2018. Under the agreement, Tenaska will manage the day-to-day capacity and transportation of 7G's liquids-rich natural gas on Alliance from 7G's Kakwa River Project in northwest Alberta, to natural gas buyers in the Chicago area.
Tenaska’s views on the arrangement
"We are excited about the opportunity to align with Seven Generations through this asset management arrangement. We believe that our experience and physical asset expertise will assist Seven Generations in maximising the value of its natural gas production," said Fred Hunzeker, President and CEO, Tenaska Marketing Group.
Tenaska is among the top five natural gas marketers in North America, and ranks first in gas pipeline trading release capacity. In 2014, it sold or managed approximately 2.5 trillion ft3 of natural gas, or about 9.4% of the total US natural gas consumption.
Seven Generations is a low-cost, high-growth Canadian gas developer that generates long-life value from its liquids-rich, natural gas Kakwa River Project, located about 100 km south of its operations headquarters in Grande Prairie, Alberta. 7G's corporate headquarters are in Calgary, and its shares trade on the TSX under the symbol VII.
Edited from press release by Stephanie Roker