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November 30, 2012

Summit starts courting Augusta-area towns

The battle to provide natural gas to Augusta and central Maine continues between two companies fighting for a natural gas contract with the state.

The Morning Sentinel reported that Colorado-based Summit Natural Gas has begun asking Kennebec Valley municipal leaders to vote on letters of intent to have Summit provide their natural gas services.

Summit is soliciting letters of intent from area governments and businesses in expectation that the company will get full permission to build out natural gas pipelines in the state, a level of approval Summit's rival, Maine Natural Gas, already has.

Officials at MNG, an Iberdrola subsidiary, told the paper it is focused on getting binding contracts, downplaying the significance of Summit's push for letters of intent.

In October, Summit hired former Augusta development director Michael Duguay to serve as its director of business development.

Both companies have been jockeying for Kennebec Valley clients after a legal battle over a state contract initially awarded to Maine Natural Gas.

At issue, in part, is the scope of the work. Summit says it would build out a $150 million pipeline for the whole Kennebec Valley and MNG proposed service just to state buildings.

MNG told the paper this week that it would consider building out a similar pipeline if it finds the demand is there in the region.

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