Cabot Oil & Gas In New Long-Term Sales Deal To Supply Lackawanna Energy Center

(RTTNews) - Cabot Oil & Gas Corp. (COG) reported Tuesday that it has executed a 10-year sales agreement to be the exclusive provider of natural gas supplies to Invenergy LLC's Lackawanna Energy Center power plant.

Additionally, South Jersey Industries (SJI) , the energy holding company for South Jersey Resources Group, LLC, will become a counterparty to both entities through an exclusive supply fuel management service agreement.

The company noted that confidential pricing terms under the deal guarantee Cabot attractive rates of return while providing fuel costs directly linked to power prices, eliminating risks for each of the parties involved in the transaction.

The proposed facility is a natural-gas fueled 1,500 megawatt combined-cycle generating station located in Lackawanna County, Pennsylvania and is expected to be one of the most efficient power plants in the United States.

Commercial operations are expected to begin in mid-2018 and to reach full-scale operations by year-end 2018. The facility, at maximum capacity, will burn up to 240,000 dekatherms of natural gas per day.

Dan O. Dinges, Chairman, President and Chief Executive Officer, said, "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."