Houston-based Cabot Oil & Gas Corporation has been selected as the exclusive provider of natural gas to Invenergy’s Lackawanna Energy Center, a 1,500 MW CCGT that is set to fire up in mid-2018 to reach full-scale operations by the end of that year.
At maximum capacity, the combined-cycle power plant will burn up to 240,000 dekatherms of natural gas per day.
Pricing terms under the agreement are kept confidential, but are said to “guarantee Cabot attractive rates of return while providing fuel costs directly linked to power prices,” hence eliminating risks for both parties.
Invenergy and its affiliates have developed more than 13,719 MW of projects, including CCGTs, renewables and energy storage. Headquartered in Chicago, Invenergy power assets are located in the Americas, and Europe.
Fuel management deal with SJI
In addition to the gas supply deal between Cabot and Invenergy, South Jersey Industries (SJI) will become counterparty to both entities under a supply fuel management service agreement. Further details to this latter accord were not disclosed.
“Together with our previously announced agreement with SJI to supply natural gas to the Caithness Moxie Freedom project, Cabot will be providing more than 400,000 dekatherms of natural gas per day for power generation directly in our backyard," commented Dan O. Dinges, Cabot CEO.As an independent natural gas producer, Cabot sources its entire resource base located in the continental United States.
South Jersey Industries routes its business through the utility South Jersey Gas while non-regulated businesses such as clean technology, efficiency enhancements and renewables are run through South Jersey Energy Solutions.