AUGUSTA (AP) — The University of Maine at Augusta has signed a five-year contract to heat campus with natural gas, a deal expected to save the school up to $1 million.

The deal with Brunswick-based Maine Natural Gas, a subsidiary of Iberdrola USA, was announced Tuesday. The campus will begin receiving natural gas on Oct. 1.

Natural gas will replace No. 2 heating oil.

University spokeswoman Rachel McFadden told the Kennebec Journal (http://bit.ly/16NYDXs ) that under the contract’s terms, the university could re-up with the company for an additional five years.

The University of Maine System solicited bids in December for cost-saving forms of fuel to campuses in Augusta, Farmington, Machias and Presque Isle. The Augusta project is the only one to move forward so far.