|
ENRON AND SK FORM GAS DISTRIBUTION JV IN SOUTH KOREA
FOR IMMEDIATE RELEASE: Thursday, December 10, 1998
HOUSTON - Enron International, a wholly owned subsidiary of Enron Corp., announced today the signing of a joint venture agreement with SK Corporation to distribute natural gas in South Korea. Through the joint venture, Enron will acquire interests in and jointly market gas through SK's five city gas companies, Daehan, Pusan, Cheongju, Pohang and Kumi City Gas; and a liquefied petroleum gas (LPG) importer, SK Gas. These companies currently comprise the largest distributor of natural gas in Korea, with approximately a 20 percent share of the Korean natural gas market and a 50 percent share of the Korean LPG market. SK will contribute its existing interests in the gas companies and Enron will contribute an equal amount of cash. Total capitalization of the new company will be approximately US$450 million and the transaction is expected to close in January.
"Enron is very pleased to enter the South Korean energy market with SK," said Joseph W. Sutton, Enron International president and CEO. "The opportunity is an excellent fit with our interest in the Asia-Pacific energy infrastructure market. We expect our global expertise in natural gas to further enhance the already profitable performance and capabilities of these gas companies.
"These operations are expected to immediately contribute to our earnings and represent an excellent opportunity for long term growth, as well," Sutton continued. "The joint venture serves 1.2 million customers and additional growth is expected, given the government's strong support for natural gas."
SK Corporation is a $9 billion energy, chemicals and telecommunications business with interests in Korean gas distribution and an LPG import company. SK Corporation is a member of SK Group, one of Korea's five largest conglomerates and among the leading companies in Asia. It is a major force in energy production and distribution; films, fibers and petrochemicals; telecommunications; engineering and construction; and international trade and finance. SK Group employs 30,000 people on six continents.
Enron is one of the world's leading integrated electricity and natural gas companies. The company, which owns approximately $30 billion in energy related assets, produces electricity and natural gas, develops, constructs and operates energy and water facilities worldwide and delivers physical commodities and risk management and financial services to customers around the world. Enron's Internet address is www.enron.com, and the stock is traded under the ticker symbol, "ENE."
Click here to download this press release in Microsoft Word format.
For additional information please contact:
John Ambler
(713) 646-6423
 |
