Press Release

ENRON SIGNS CONTRACTS TO MOVE FORWARD ON SUTTON BRIDGE PROJECT

FOR IMMEDIATE RELEASE: Monday, January 20, 1997

LONDON -- ENRON has announced that, subject to regulatory approvals, it will proceed with the proposed Sutton Bridge Power Station in Lincolnshire, United Kingdom. The 300lb million combined cycle gas turbine plant will be built and owned by ENRON and will employ approximately 50 people on a permanent basis once it begins commercial operation in mid 1999. Planning permission was granted in March 1992 and ENRON has recently made a further application to the DTI to increase the capacity of the plant by 90 MW to 790 MW.

In a separate set of transactions, again subject to the satisfaction of certain conditions, ENRON also has announced that it has entered into power sales arrangements with the Eastern Group for volumes similar to those produced by the plant. In addition, Eastern Natural Gas has agreed to buy up to 475 million Therms of gas per year from Enron Capital & Trade Resources Ltd. over a 15 year period commencing mid-1999. The price will be related to the prevailing market price for gas, and daily volumes will depend upon the relative prices of gas and electricity at the time. Eastern also has agreed to sell gas to ENRON at volumes related to the power sales arrangement.

"This project at Sutton Bridge, combined with our contracts with the Eastern Group, will allow ENRON to expand significantly its presence and competitive position in both the U.K. electricity and natural gas markets," said Mark Frevert, president and CEO of Enron Europe. "We expect the power plant to make an important contribution to the economic growth of the area by acting as a catalyst for further industrial development."

Provided all the necessary permits are in place, it is anticipated that work will start on site before the end of March 1997. Approximately 900 people will be working on the site at the peak of construction, and the plant is expected to take 24 months to complete.

ENRON, 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; 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; and is one of the largest independent developers and producers of electricity in the world. ENRON is traded under the ticker symbol, "ENE."

For additional information please contact:

Diane Bazelides

(713) 853-6285