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FAIRBANKS (AP) — A multimillion-dollar business deal with ramifications for the cost of energy in Fairbanks is set to close this week.
The deal is between the Fairbanks North Star Borough and the state of Alaska to expand natural gas availability, the Fairbanks Daily News-Miner reported .
The deal will "bring low-cost energy to as many residents and businesses of Interior Alaska as possible, as quickly as possible," according to the Interior Energy Project.
"We are very much looking forward to getting the deal done and across the finish line," Gene Therriault, coordinator for the Interior Energy Project, told the Borough Assembly at a briefing last week.
The borough-owned Interior Gas Utility is purchasing Fairbanks Natural Gas and other assets from the state-owned Alaska Industrial Development and Export Authority, which is financing the purchase along with major expansions to natural gas piping and storage for $330 million.
The Interior Gas Utility board is set to meet Tuesday. The deadline to close the deal is midnight Thursday.
When the purchase is complete, Fairbanks Natural Gas will need to merge with the Interior Gas Utility, said Jomo Stewart, Interior Gas Utility general manager.
"We've been working through the bits and pieces to bring the two utilities together," he said.
Dan Britton, the longtime CEO of Fairbanks Natural Gas, will be the general manager of the combined utility, Stewart said.
The Interior Gas Utility also is acquiring a liquefaction plant, a trucking company and a gravel pad as part of the deal.