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ENRON LOW BIDDER FOR FIRST NATURAL
GAS-FIRED POWER PLANT IN WESTERN BRAZIL
FOR IMMEDIATE RELEASE: June 16, 1997
HOUSTON -- Enron Corp. today announced that it was the low bidder to build, own and operate a 480-megawatt (MW) power plant in the state of Mato Grosso in western Brazil. Enron will now finalize the power purchase agreement (PPA) with Eletronorte, the operating subsidiary of the Brazilian utility, Eletrobras, for the first independent power project to be fueled by natural gas in the region. The total capital investment in the project is approximately $500 million. The project includes the power generation facility and related infrastructure as well as a 618 kilometer natural gas pipeline connecting to the Bolivia to Brazil Pipeline on the Bolivian side. This pipeline will supply the plant and meet industrial needs for clean efficient energy in Mato Grosso.
"Enron is proud to have the opportunity to help meet the region's power needs and to bring the benefits of natural gas to the state of Mato Grosso, one of Brazil's fastest-growing economies," said Kenneth L. Lay, chairman and CEO of Enron Corp. He noted that Enron has been working locally for almost three years assessing the energy needs of the state and developing a plan to provide the least-cost integrated solution.
"Brazil is a key market for Enron's infrastructure development activities as well as for our financing and risk management services," Lay said. Enron is a participant in the Bolivia to Brazil Pipeline, slated to begin construction in the coming months. The company also holds a 25 percent interest in the recently capitalized Bolivian pipeline system, Transredes, S.A.
The power plant will be located in the city of Cuiaba, the capital of the state of Mato Grosso, and will be constructed in three phases. The first phase will generate 150 MW with commercial operation to begin within a year following the signing of the PPA. The plant will be expanded to 300 MW by the end of the first year of operation, and converted from diesel fuel to natural gas. The final phase of the project, to be completed by the end of the second year of operation, will include conversion to combined cycle, bringing the total generation to 480 MW.
Enron Corp., one of the world's largest integrated natural gas and electricity companies with approximately $15 billion in assets, operates one of the largest natural gas transmission systems in the world; is the largest purchaser and marketer of natural gas and the largest non-regulated marketer of electricity in North America; is a leading participant in liberalized energy markets in the United Kingdom and the Nordic Countries; markets natural gas liquids worldwide; manages the largest portfolio of fixed-price natural gas risk management contracts in the world; is among the leading entities arranging new capital to the energy industry; owns a majority interest in Enron Oil & Gas Company, one of the largest independent (non-integrated) exploration and production companies in the United States; owns a majority interest in Enron Global Power & Pipelines L.L.C., which is owner and manager of operating power plants and natural gas pipelines around the world; is one of the largest independent developers and producers of electricity in the world; and is a major supplier of solar and wind renewable energy worldwide. Enron is traded under the ticker symbol, "ENE."
For additional information please contact:
Deborah Witmer
(713) 853-3078
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