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ENRON INTERNATIONAL TO DEVELOP KANNUR POWER PROJECT
FOR IMMEDIATE RELEASE: Monday, December 29, 1997
MUMBAI - Enron International, a wholly owned subsidiary of Enron Corp., today announced that its affiliate will acquire a 74 percent interest in the 513 megawatt Kannur Power Project in Kerala. Enron will jointly develop this project with KPP Nambiar Group, which will hold the remaining 26 percent of the project's equity. The project is expected to cost approximately US $400 million.
Under the terms of the 20-year power purchase agreement (PPA) signed between Kannur Power Project Limited (KPPL) and the Kerala State Electricity Board (KSEB) in March 1996, the entire electrical output will be sold to KSEB.
The project has received an in-principle clearance from the Central Electricity Authority (CEA) and is currently awaiting the final techno-economic approval.
KPPL will seek to complete remaining clearances and approvals as early as possible in order to achieve financial close in 1998. The plant is expected to be in commercial operation in the year 2000.
The project holds a naphtha allocation, enabling it to purchase naphtha from the Ministry of Petroleum and Natural Gas. However, the project's coastal location is well suited for future conversion to LNG, the cleanest source of power generation.
"The Kannur project will go a long way in helping Kerala satisfy its energy requirements. Enron will focus on bringing the project on line as quickly as possible,'' said Rebecca P. Mark, Chairman and CEO of Enron International. She expressed the hope that this would be the beginning of a long association with the state of Kerala.
Enron Corp., one of the world's largest integrated natural gas and electricity companies with approximately $23 billion in assets, operates one of the largest natural gas transmission systems in the world; is the largest marketer of natural gas and 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 and manages 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 energy worldwide. Enron's internet address is www.enron.com and its common stock is traded under the ticker symbol, "ENE."
For additional information please contact:
Kelly Kimberly
(713) 853-5377
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