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FOR IMMEDIATE RELEASE: Wednesday, June 19, 1996
HOUSTON -- Enron Global Power &
Pipelines L.L.C. (Ticker symbol: EPP) today announced that it
has acquired from Enron Corp. (Enron) a 50 percent interest in
the Puerto Plata, Dominican Republic power project. EPP also purchased
approximately $11 million principal amount of subordinated notes
owed by the project. The combined purchase price of approximately
$50 million will be paid with approximately 1.9 million common
shares of EPP.
The 185-megawatt, oil-fired, barge-mounted
facility provides electricity under a 20-year contract to government-owned
Corporacion Dominicana de Electricidad, which provides electric
distribution services to the Dominican Republic.
"The acquisition of an interest in the
Dominican Republic power project, along with the purchase of an
interest in the Centragas natural gas pipeline in Colombia just
two months ago, demonstrate how EPP benefits from Enron's ability
to penetrate geographical regions that have significant energy
needs," said Rodney L. Gray, chairman, president and chief
executive officer of EPP. "The power project is expected
to be immediately additive to earnings, cash flow and earnings
per share in 1996."
EPP's purchase right agreement with Enron
provides preferential access to Enron's significant backlog of
energy development projects that assist in EPP's long-term growth.
EPP continues to evaluate third-party projects which could contribute
to earnings and cash flow growth.
In addition to the Dominican Republic interest,
Enron Global Power & Pipelines L.L.C., which is owned approximately
59 percent by Enron Corp., owns interests in natural gas pipelines
in Argentina and Colombia, two power plants in the Philippines
and a power plant in Guatemala and is traded on the New York Stock
Exchange under the ticker symbol "EPP."
For additional information please contact:
Carol Hensley
(713) 853-6498
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