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ENRON GLOBAL POWER & PIPELINES TO ACQUIRE
INTEREST IN CENTRAGAS NATURAL GAS PIPELINE
FOR IMMEDIATE RELEASE: Monday, April 15, 1996
HOUSTON -- Enron Global Power & Pipelines
L.L.C. (Ticker symbol: EPP) today announced that it has reached
an agreement to acquire from Enron Corp. (Enron) an approximate
50 percent interest* in the Centragas natural gas transmission
system in Colombia in exchange for approximately 1.6 million common
shares of EPP.
The 357-mile Centragas natural gas transmission
system has a capacity of 110 million cubic feet of gas per day
and extends from Ballena, on the northern coast of Colombia, to
Barrancabermeja, in the central region of the country. Ecopetrol,
Colombia's state-owned oil company, is the sole customer for the
gas transportation services under a 15-year contract.
"The acquisition of an interest in the
Centragas pipeline is consistent with our strategy of owning and
operating assets in developing countries where there is a tremendous
need for energy infrastructure," said Rodney L. Gray, chairman,
president and chief executive officer of EPP. "Our purchase
right agreement with Enron provides EPP preferential access to
Enron's significant backlog of projects in development that will
assist in EPP's long-term growth. We expect this project to be
immediately additive to earnings, cash flow and earnings per share
in 1996."
EPP expects to purchase other Enron projects
during 1996 and continues to evaluate third-party projects which
could contribute to earnings and cash flow growth. Enron began
commercial operation of a 154-megawatt power project in China
and a 185-megawatt power project in the Dominican Republic in
January and February 1996, respectively.
In addition to the Centragas interest, Enron
Global Power & Pipelines L.L.C., which is owned approximately
52 percent by Enron Corp., owns interests in a natural gas pipeline
in Argentina, two power plants in the Phillippines and a power
plant in Guatemala and is traded on the New York Stock Exchange
under the ticker symbol "EPP".
*Assuming Enron obtains certain consents, EPP
will acquire a 1 percent general partner interest by December
1996.
For additional information please contact:
Diane Bazelides
(713) 853-6285
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