FAIRBANKS, Alaska — An Alaska utility said it knows about diesel fuel contamination at a gas liquefaction plant owned by a company it plans to purchase and that there is a plan to address the risk.
Interior Gas Utility is set to buy Pentex, parent company of Titan LNG, and its assets for $60 million from the state’s economic development agency in a bid to bring more clean-burning natural gas to the Fairbanks North Star Borough.
The Alaska Industrial Development and Export Authority bought the plant from Harrington Partners in 2015 following a diesel fuel spill, said Jomo Stewart, the utility’s general manager.
Harrington Partners performed an environmental cleanup to satisfy state regulators’ requirements, but it’s possible the contamination has spread, the Fairbanks Daily News-Miner newspaper reported Monday.
The terms of the sale to the economic development authority said it wasn’t liable for the spill, Stewart said, which is also included in the utility’s proposed purchase agreement.
After the sale, Stewart said the plan is to carry out additional testing for environmental contamination.
The utility’s board of directors will vote on the purchase Dec. 5, and the board of the economic development authority will vote two days later.
The state allocated money for the purchase.
The Titan LNG facility in Point MacKenzie liquefies natural gas for transport. Liquid natural gas, or LNG, will not ignite and is safer and easier to ship.
Information from: Fairbanks (Alaska) Daily News-Miner, http://www.newsminer.com