Gazprom Marketing & Trading USA, Inc. (GM&T USA) and Associated Electric Cooperative, Inc. (AECI) recently agreed to a long-term supply contract. Under the agreement, GM&T USA will be the sole supplier of natural gas to AECI’s St. Francis plant in Glennonville, Missouri. The two-unit facility generates more than 500 megawatts and consumes up to 86 million cubic feet of natural gas per day at peak capacity. The 23-year contract began October 1, 2011 and will run through August 2034.

“This transaction fits well with GM&T USA’s long-term perspective on world and U.S. energy markets. We see natural-gas fired peak demand plants as an important growth opportunity in the United States. In particular, our agreement with AECI demonstrates our commitment to the North American market,” said John Hattenberger, GM&T USA’s President and Managing Director.  “AECI’s preference for operating consistency, reliability, and pricing was a great complement to our load following capabilities and long-term market view.”

Under the agreement, GM&T USA will provide day-ahead gas supply, intra-day gas supply, and balancing service.

“We are pleased to enter into this agreement with GM&T USA because it provides a reliable fuel source for St. Francis at a stable price for the long haul,” said Roger Clark, Director, Engineering and Operations at AECI. “GM&T USA’s interest in working with utilities, particularly cooperative power companies such as ours, demonstrates a solid understanding of the U.S. marketplace and a willingness to take the long view of its partnerships.”

The St. Francis facility has been acknowledged as one of the cleanest, most efficient natural-gas power plants in the country. In 2002, it was recognized as one of the top-20 combined-cycle plants in the country for low emissions and efficient performance. The facility also received Power magazine’s “Year 2000 Powerplant Award” for its innovative approach to minimizing environmental impacts.

GM&T USA, which began trading natural gas in North America in 2009, continues to grow its gas trading operations, headquartered in Houston, and has already become one of the top 25 physical marketers in North America, according to Platts Gas Daily.