AUGUSTA — The University of Maine at Augusta has signed an agreement with Maine Natural Gas to provide service to the campus starting Oct. 1, according to a statement released Tuesday.

The energy delivery will last five years, with an option to renew for an additional five years.

“This commitment from UMA is another significant testimony for Maine Natural Gas and further proof of our commitment to provide affordable natural gas service to businesses and residences in Augusta and on through the Kennebec Valley,” said Darrel Quimby, vice president of Maine Natural Gas. “The work on our Augusta natural gas pipeline continues to progress very well – we’ve already got more than 70% of it in the ground and are adding to that daily. Customers are joining us every day, and we’ve signed a total of 150 businesses and residences in Augusta, many of whom will start enjoying the benefits of affordable natural gas before the end of this year.”

Maine Natural Gas, based in Brunswick, is a subsidiary of Iberdrola USA, and is building a $54 million natural gas distribution project in Augusta. It is one of two major companies competing for natural gas clients in the area. Summit Natural Gas of Maine started construction of its $350 million natural gas pipeline in the Kennebec Valley in early June. Summit, which is based in Augusta, is owned by Colorado-based Summit Utilities.