BRUNSWICK

As it begins a project to deliver natural gas in Bath today, Maine Natural Gas announced Wednesday it also was selected to deliver the fuel to 19 of 25 state facilities in the Augusta area over the next 10 years.

The state award is “strong validation of our business model and our commitment to safely deliver affordable natural gas to the residents, businesses and institutions of Augusta and across Maine,” Bob Kump, CEO of Iberdrola USA, said in a news release.

Although the award is subject to final approval, Brunswick-based Maine Natural Gas expects to begin contract talks immediately to start delivering gas to some state facilities by Nov. 1.

Maine Natural Gas said Wednesday it has completed 99 percent of its 21.4-mile Augusta pipeline and expects to energize it for the first deliveries by the end of September.

Prior to the state announcement, Maine Natural Gas said it had signed up more than 215 Augusta-area customers, including the new MaineGeneral Medical Center and the University of Maine at Augusta. Both should start receiving gas by the end of the year.

The Augusta pipeline created jobs for approximately 225 workers from 15 Maine companies, the company said, and will save Augusta customers millions of dollars in heating costs .

As Maine’s nascent natural gas industry continues to develop — promising lower heating costs and new energy options — companies have been competing fiercely to win the large institutional contracts that help them subsidize the buildout of pipelines systems that can be brought to less lucrative residential areas.

Maine Natural Gas is installing lines in Augusta, Bath, West Bath, Brunswick, Freeport, Gorham, Pownal, Topsham and Windham.

In doing so, the company often employs Enterprise Trenchless Technologies of Lisbon Falls, which lays the pipe for connecting.

In Bath, working with ETTI and Topsham-based Harry C. Crooker and Sons, construction of natural gas lines near BIW is due to start today.

The main lines will be located within the municipal right-of-way. Construction is expected to last into October and affect Stacey, Middle, Centre, Water, Front and Commercial streets.

Crews will be working 7 a.m. to 7 p.m. Monday through Friday. Sidewalks and roadways will be in various states of repair throughout the construction.

On Tuesday, a competitor — Summit Natural Gas — said it had signed deals to provide natural gas delivery services to two Inland Hospital, a 48- bed hospital in Waterville; and Redington-Fairview Hospital, a 25-bed critical access facility in Skowhegan, according to a news release from the company.

Summit is in the process of building out the first phase of its planned $350 million Kennebec Valley natural gas transmission and distribution project.

It competes with Maine Natural Gas for market share in central Maine’s newly opened natural gas distribution market.

In Kennebec County, it is marketing its services in Augusta, Fairfield, Farmingdale, Gardiner, Hallowell, Madison and Waterville. Closer to the Mid-coast, Summit received approval by the town councils of Cumberland, Falmouth and Yarmouth to provide natural gas line and utility service to their businesses and residents starting in 2014.

Summit is owned by Colorado based Summit Utilities, which built 20 natural gas systems similar to the Kennebec Valley project serving more than 35,000 homes and businesses in Colorado and Missouri.

Iberdrola USA, the parent company of Maine Natural Gas, serves approximately 570,000 natural gas and propane customers in Maine, New Hampshire and New York.

Iberdrola USA owns and operates natural gas assets valued at more than $1 billion, including 123 miles of high-pressure transmission lines, 17,615 miles of steel & HDPE distribution lines and 875 regulator stations.

In 2012, Iberdrola USA safely delivered more than 110 billion cubic feet of natural gas to its customers.

Iberdrola USA is also the parent company of Central Maine Power Co.

bmentzinger@timesrecord.com