Court approves $31.9 million LNG bid from Marathon Oil

Marathon Oil Company, a wholly owned subsidiary of Marathon Oil Corporation has announced that it has acquired Enron's right to deliver and sell liquefied natural gas (LNG) at terminal facilities located at Elba Island, near Savannah, Georgia.

The United States Bankruptcy Court for the Southern District of New York approved the transfer of ownership on August 28. Marathon was the successful bidder for the rights, with a $31.9 million bid.

Under the terms of the agreement, Marathon can supply up to 58 billion cubic feet of natural gas (as LNG) per year, for approximately 17 years, to El Paso Merchant Energy at the Elba Island LNG re-gasification terminal.

'This agreement will enable us to capture value from the expected growth in LNG imports into the U.S., while also providing options to commercialise our significant natural gas resources in Equatorial Guinea,' said Clarence P. Cazalot Jr., president and CEO of Marathon Oil Corporation.