OMAHA, Nebraska – Tenaska Energy (Tenaska) announced today that AIG Financial Products Corp. (AIG-FP), a member company of American International Group, Inc. (AIG), has signed an agreement to purchase a 50 percent partnership interest in Tenaska Marketing Ventures, Tenaska Marketing Canada and Tenaska Gas Storage (collectively TMV).
Financial terms of the transaction were not disclosed.
The new joint venture will combine the physical natural gas marketing expertise of TMV, which ranks among the top 10 gas marketing companies in North America, with AIG-FP’s financial strength and financial structuring and risk management capabilities.
Tenaska and AIG-FP will jointly guarantee the venture’s payment obligations.
“Our new partnership with AIG-FP will strengthen and grow TMV’s position in the energy marketplace, and allow us to provide our customers with a broader array of products and financial services,” said TMV President Fred Hunzeker. “TMV customers will see no change in our basic approach to business as we continue to focus on providing value and managing their risk.”
“Tenaska is an excellent partner with a strong and scaleable business,” said Doug Poling, AIG-FP Executive Vice President – Energy and Transaction Development Groups. “This partnership represents a natural and significant extension of AIG-FP’s commodities business into the physical commodities arena. We are confident that Tenaska and AIG-FP will succeed in drawing on the complementary skills of one another as they identify opportunities for product innovation and revenue growth, consistent with each company’s disciplined approach to risk management.”
About Tenaska Marketing Ventures
Tenaska Marketing Ventures and Tenaska Marketing Ventures Canada, and Tenaska Gas Storage (collectively TMV) are affiliates of Omaha-based Tenaska Energy, one of the leading independent power producers in the U.S. and ranked in 2006 by Forbes magazine as the 16th largest private company in the U.S. based on 2005 revenues. TMV is regarded as one of the top 10 natural gas marketers in North America, and provides natural gas commodity, volume management, hedging and asset management products and services.
About AIG Financial Products Corp.
AIG Financial Products Corp. (AIG-FP) is a wholly owned subsidiary of American International Group, Inc. Founded in 1987, AIG-FP was one of the first companies focused principally on the derivatives markets in the United States. AIG-FP is active in a full spectrum of OTC derivative and structured products markets, including commodities, credit, energy, equities, foreign exchange, and rates. As leading participants in the capital and derivatives markets, AIG-FP provides clients with corporate finance, investment, and financial risk management solutions. AIG-FP’s clients include many of the world’s top corporations, investment managers, pension funds, banks, investment banks, sovereigns, hedge funds, foundations and endowments, as well as select high-net-worth individuals. With group offices in London, Paris, Tokyo, Houston, Hong Kong, and Wilton, Connecticut, AIG-FP has extensive global reach. For additional information please refer to http://www.aigfp.com.
About American International Group, Inc.
American International Group, Inc. (AIG), world leaders in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional, and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services, and asset management around the world. AIG’s common stock is listed in the U.S. on the New York Stock Exchange as well as the stock exchanges in London, Paris, Switzerland, and Tokyo.