Alabama's Black Belt Energy Offers $925mln Gas Project Revenue Bonds for 30-Year Natural Gas Supply

Black Belt Energy Gas District is offering $925 million in 2025 Series B gas project revenue bonds to prepay acquisition costs for a fixed amount of natural gas. The bonds will be secured by a trust estate and are not an obligation of the state of Alabama or the member municipalities. Interest will be paid on April 1 and October 1, beginning in 2026. Moody's expects to rate the bonds A2. Goldman Sachs and Stifel are lead managers.

The Black Belt Energy Gas District, a municipally owned corporation formed in 2008 by three cities in Alabama, has announced the issuance of $925 million in 2025 Series B gas project revenue bonds. The proceeds from this offering will be used to prepay acquisition costs for a fixed amount of natural gas expected to be delivered over a 30-year period. The bonds are secured by a trust estate and are not an obligation of the state of Alabama or its member municipalities [1].

The natural gas will be supplied by Aron Energy Prepay 56, a Delaware limited liability company, and will be sold to project participants by Black Belt. The bonds are expected to be rated A2 by Moody's and will be managed by Goldman Sachs and Stifel as lead managers. Interest on the bonds will be paid on April 1 and October 1, beginning in 2026 [1].

Meanwhile, Colombia's Naturgas Association forecasts a significant increase in investment in the country's natural gas industry. The association expects investment to rise by 34.6% to $1.1 billion in 2025, driven by exploration and production efforts to reduce the fuel deficit. The projected investment includes $1.007 billion for exploration and production, a 37% year-on-year increase, and $50 million for distribution and marketing [2].

References:
[1] https://www.marketwatch.com/story/black-belt-energy-to-offer-925m-of-gas-project-revenue-bonds-6b339658
[2] https://www.reuters.com/business/energy/colombias-2025-natural-gas-investment-seen-up-35-11-bln-naturgas-association-2025-09-02/