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Enron Mail |
Dabhol lenders to vote today on PPA PPPPA termination Business Standard, 05/16/01 Enron to suspend investments of 600 mln usd in Brazil energy sector AFX News, 05/15/01 USA: Sempra unit to boost natgas delivery to California. Reuters English News Service, 05/15/01 Enron Urges Reforms In Japan Electricity Market-Nikkei Dow Jones International News, 05/15/01 Enron Agrees to Provide Market Data to NGX PR Newswire, 05/15/01 UAE To Seek New Partners If Enron Exits Dolphin Gas Proj Dow Jones International News, 05/15/01 Enron Should Sell Utility to Oregon, Lawmaker Argues (Update2) Bloomberg, 05/15/01 Enron to Provide Gas Prices to NGX, Drops Lawsuit (Update1) Bloomberg, 05/15/01 Dabhol lenders to vote today on PPA PPPPA termination Our Banking Bureau Mumbai 05/16/2001 Business Standard 1 Copyright © Business Standard The 25-odd lenders to the Dabhol power project will vote today on whether the Enron-promoted Dabhol Power Company (DPC) should be allowed to to serve a preliminary PPA termination notice to the Maharashtra State Electricity Board (MSEB). The voting will take place through conference calls criss-crossing the globe at 6.30 pm, Indian Standard Time. Even though the three Indian lenders_ the Industrial Development Bank of India (IDBI), the State Bank of India (SBI) and ICICI_ have decided to vote against the proposition, they will not be able to block the move. Technically, the proposal can be passed if four per cent of lenders are in favour of the termination notice. In effect, it will be passed if one of the 25 lenders casts its vote in favour of it. So, it's almost a foregone conclusion that DPC will be asked to issue its termination notice. Multilateral agency J-Exim, which has provided guarantees, will not participate in the exercise. Barring J-Exim, other financial intermediaries including global arrangers ABN Amro, Citi, ANZIB, CSFB and other banks and OPIC will cast their votes tomorrow. "In the first round, Indian lenders put their foot down and refused to give clearance to the termination notice. Thistime around they will not be able to block the move any more. The Indian lenders alone cannot save the controversial $3 billion as some of the foreign lenders are in favour of issuing the termination notice," said a source. The Indian lenders are in favour of completing the project without any time and cost over-run. They have disbursed about 80 per cent of their Rs 1,500 crore worth of loan commitments to phase II of the project, 93 per cent of which is complete. The trial run is expected to commence in June. The board of the Dabhol Power Company has already authorised Enron India managing director, K Wade Cline, to serve a termination notice as and when he deems fit. At a meeting of the lenders last month in London, the foreign lenders were keen that the termination notice be served in the face of defaults by the Maharashtra State Electricity Board (MSEB) and the Union government's refusal to honour the counter-guarantee of Rs 102 crore for the December bill. The domestic lenders are not covered by the counter-guarantee if the contract is terminated. The foreign lenders are covered by the counter-guarantee. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Enron to suspend investments of 600 mln usd in Brazil energy sector 05/15/2001 AFX News © 2001 by AFP-Extel News Ltd SAO PAULO (AFX) - Enron Corp will suspend investments of 600 mln usd in the Brazilian energy sector, news agency JB Online quoted Enron vice-president and Eletricidade e Servicos SA Elektro chairman Orlando Gonzales as saying. Of the total investment, 500 mln usd was to be assigned to the expansion of the thermoelectric plant Cuiaba II in the state of Mato Grosso, and in the construction of Rogen in the state of Rio de Janeiro, with the remainder to be invested in unit Elektro, it said. "There are no clear regulations for the sector. Regulatory issues are holding back investments," JB Online quoted Gonzales as saying. Gonzales said the decision to suspend the investments may be reconsidered if the energy sector regulator Aneel establishes clearer regulations. mg/as For more information and to contact AFX: www.afxnews.com and www.afxpress.com Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. USA: Sempra unit to boost natgas delivery to California. 05/15/2001 Reuters English News Service (C) Reuters Limited 2001. SAN FRANCISCO, May 15 (Reuters) - Southern California Gas Co. (SCG) said in a statement on Tuesday it will add around 200 million cubic feet a day, or about six percent, to its pipeline system by the end of the year in order to meet the surge in demand for gas-fired power generation. Today's announcement comes two months after SCG, a unit of Sempra Energy , proposed to increase capacity on its system by 175 mmcfd, or five percent. Both projects will add around 11 percent of new gas capacity to its transmission system this year, the company said in a statement. In its latest proposal, called the Kramer Junction Interconnect, SCG said it would build a 32-mile pipeline link to the Kern-Mojave pipeline system that will allow it to deliver around 200 mmcfd into its system. The new capacity would be enough to drive three 500-megawatt power plants or enough gas to serve 1.4 million residential customers a day, the statement said. SCG, the nation's largest gas utility with more 18 million consumers in central and Southern California, said utilization of its intrastate transmission system in the past nine months had jumped from 75 percent to over 95 percent, due largely to the rise in gas-fired power generation. The company's announcement is the latest in several proposals to expand gas pipeline capacity to California, where demand for gas is expected to jump because of the number of gas-fired power plants being built or scheduled for construction. Gas is already used to generate about a third of California's electricity. And since April 1999, the state has approved 13 major gas-fired power plant projects with a combined generation capacity of more than 8,900 megawatts. Nine gas-fired power plants, with a total generation capacity of more than 6,000 megawatts, are under construction. Over the past two months plans to build or expand gas lines serving California have been announced by Enron unit Transwestern, Williams Cos' Kern River Transmission, El Paso Corp. units El Paso Natural Gas Co. and Mohave Pipeline Co., Pacific Gas & Electric Corp. unit National Energy Group, Questar Corp. , Calpine Corp. , and Kinder Morgan . Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Enron Urges Reforms In Japan Electricity Market-Nikkei 05/15/2001 Dow Jones International News (Copyright © 2001, Dow Jones & Company, Inc.) TOKYO (Nikkei)--Asserting that cuts in electricity prices will help Japanese companies save as much as Y4 trillion, major U.S. energy firm Enron Corp. (ENE) on Tuesday urged Japanese power firms to revamp the electricity market by separating operations such as power generation, transmission and distribution, The Nihon Keizai Shimbun reported. Enron's 10-point proposal also calls for the construction of more power plants and full-scale deregulation of retail electricity, including sales to households. If such measures are carried out and electricity prices fall to match the levels of other industrialized nations, Japan's industrial sector could trim its costs by Y4 trillion, Enron said. At a seminar on power industry deregulation hosted by Enron, the company asserted that Japan's deregulation in such areas as wholesale electricity auctions in 1996 and bulk retail sales last year has not brought significant benefits to end-users. New suppliers entering the market only account for a combined 0.4% of the entire electricity sector, Enron said, criticizing the fact that power plant facilities are mainly concentrated among electric power companies. Regarding prices, an official representing operators of power generation facilities asserted that "industrial-use electricity prices in Japan are stuck at a high level at around Y13 per kilowatt, compared with Y5 in the U.S., Y3 in Canada, Y9 in Germany and Y4-Y8 in Southeast Asia." In fact, department store operator Takashimaya Co. (8233 or J.TKA), which last November switched to new market entrants for part of its electricity supply, was able to cut costs by Y450 million in the first year, said a company official. Enron hopes to generate competition by urging Japanese electric utilities to spin off different operations, analysts say. If the number of power generation facility operators increases, this will help bolster Japan's electricity trading market, an area in which Enron has a strong business interest. Splitting electricity operations into generation, transmission and distribution is expected to open the electric utility network to new entrants. This will boost transparency in the fees that electric power companies charge for transmitting power on behalf of the operators of power generation facilities, Enron says. Citing the power shortage in California, however, Japan's electricity sector has strongly opposed such spin-offs, stating that generation and distribution must be part of a single continuum to ensure a stable supply. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Enron Agrees to Provide Market Data to NGX 05/15/2001 PR Newswire (Copyright © 2001, PR Newswire) CALGARY, May 15 /PRNewswire/ - NGX Canada Inc. (NGX), a wholly owned subsidiary of OM AB (OM), today announced that an arrangement has been made with Enron Canada Corp., a wholly owned subsidiary of Enron Corp. (Enron), whereby trading data from certain contracts listed on Enron's online trading system, EnronOnline will be included in the computation of three Alberta Gas Price Indices. NGX acquired the AECO "C" & NIT Daily Spot, One-Month Spot, and Bid-Week Spot gas price indices (Alberta Gas Price Indices) from Canadian Enerdata Ltd. last September. Subsequent to the acquisition of the Alberta Gas Price Indices, NGX has provided real-time information to its customers on the establishment of the weighted average price indices based on transactions conducted through NGX's trading system. Canadian Enerdata Limited continues to publish the Alberta Gas Price Indices in the Canadian Gas Price Reporter. Peter Krenkel, President of NGX, stated, "We believe that inclusion of data from EnronOnline will serve to make our price indices among the best in North America. The industry has been very supportive of the visibility and integrity we are able to bring to the Alberta Gas Price Indices, which removes the guesswork around gas price index methodology. However, after reviewing the matter with Enron and other industry participants, we recognized that Enron had legitimate concerns and the industry felt that "more is better". The inclusion of data from the highly liquid EnronOnline system should improve the quality of our price indices even further." Rob Milnthorp, President and CEO of Enron Canada commented, "We are very pleased to have EnronOnline transactions included in the Alberta Gas Price Indices. This will provide industry participants with a more comprehensive source of data and a better opportunity to manage risk around these price indices as they are now assured that all their transactions on EnronOnline will be included in the computation of the Alberta Price Indices." The inclusion of EnronOnline data satisfies the principal claims made by Enron in their legal action against NGX, Canadian Enerdata Ltd., OM and Richard Zarzeczny and Enron has agreed to discontinue the legal action against those parties with the conclusion of this arrangement. NGX and Enron are planning to implement the necessary system changes by August 1, 2001 but in any event will provide at least thirty days notice to the industry. Once in operation, data from transactions in the relevant contracts listed on EnronOnline will be fed to NGX in real-time. The methodology for computing the Alberta Gas Price Indices will continue to be on a weighted-average basis. NGX will engage independent auditors to insure full compliance with the Index Methodology Guide. This guide is available on NGX's website at www.ngx.com. NGX located in Calgary, Canada provides electronic trading and clearing services to natural gas buyers and sellers at seven markets in Canada. Over the past six years, NGX has grown to serve over 120 customers with trading activity averaging 225,000 TJ's per month. NGX is owned 100% by OM (www.om.com). OM is a leader in providing products and services in the field of transaction technology. The company, with assets exceeding CDN $700 million, operates exchanges in Calgary, London and Stockholm and develops technology that increases the efficiency of financial and energy markets throughout the world. OM is listed on Stockholmsborsen (ticker symbol "OM"). Enron Corp. is one of the world's leading electricity, natural gas and communications companies. The company, with revenues of U.S. $101 billion in 2000, markets electricity and natural gas, delivers physical commodities and financial risk management services to customers around the world, and has developed an intelligent network platform to facilitate online business. Fortune magazine has named Enron "America's Most Innovative Company" for six consecutive years. Enron's Internet address is www.enron.com. The stock is traded under the ticker symbol "ENE". Canadian Enerdata Ltd. (www.enerdata.com) located in Markham Ontario has been providing information services to the North American energy industry for over 17 years. Enerdata publishes the Canadian Gas Price Reporter, PriceLine Daily, Natural Gas Market Report and Canadian Energy Trends. Enerdata also sponsors GasFair & Power, Canada's largest natural gas and electricity market conference and trade show, now in its 11th year. SOURCE NGX Canada Inc. /CONTACT: Enron Corp. - Mr. Eric Thode, Director of Public Relations, 713-853-9053; NGX Canada Inc.- Mr. Peter Krenkel, President, 403-974-1705; OM - Ms. Anna Eriksson - Vice President Corporate Communications, +46 (8) 405 66 12; Canadian Enerdata Ltd. - Mr. Richard Zarzeczny, President, 905-479-9697/ 11:17 EDT Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. UAE To Seek New Partners If Enron Exits Dolphin Gas Proj 05/15/2001 Dow Jones International News (Copyright © 2001, Dow Jones & Company, Inc.) DUBAI -(Dow Jones)- If U.S.-based Enron Corp. (ENE) pulls out of the $3.5 billion Dolphin gas project, in which the company holds a 24.5% stake, the U.A.E. Offsets Group, or UOG, will consider other companies to replace it, a United Arab Emirates industry source close to the project said Tuesday. Industry sources Monday said Enron is considering withdrawing from the project because it doesn't believe it will be profitable. Dolphin, an agreement signed two years ago by UOG and Qatar Petroleum, plans to bring 2 billion cubic feet a day of natural gas from Qatar's offshore North Field to Abu Dhabi and onward to Dubai. Enron and TotalFinaElf (TOT) each hold a 24.5% stake in the project, while UOG owns the remaining 51%. Enron is set to focus on the midstream part of the project - gas transportation - which requires building a 350-kilometer pipeline from a processing plant in Ras Laffan, Qatar, to the Taweelah terminal in Abu Dhabi and the Jebel Ali terminal in Dubai. The U.A.E. source said originally, it was thought that the U.A.E. government would fund the pipeline, which is estimated to cost around $1 billion. However, more recently, the source said the U.A.E. suggested that Enron put up the money itself. Other industry sources said Enron and TotalFinaElf also had to pay significant fees to join the project. TotalFinaElf will operate the upstream part of the project, which includes developing natural gas reserves in two blocks of the North Field. First wells are scheduled to be drilled in the second half of 2001 and come onstream in 2005. Last week, the Middle East Economic Survey reported that the foreign partners haven't yet agreed on the precise details of their working relationship or on the price of the pipeline. Qatar Petroleum and Dolphin Energy Ltd., a subsidiary of UOG, signed an initial agreement in March for the upstream section of the project. A full agreement is expected to be concluded in September, the source said. -By Dyala Sabbagh, Dow Jones Newswires; 9714 331 4260; dyala.sabbagh@dowjones.com Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Enron Should Sell Utility to Oregon, Lawmaker Argues (Update2) 2001-05-15 16:35 (New York) Enron Should Sell Utility to Oregon, Lawmaker Argues (Update2) (Updates with closing share prices.) Washington, May 15 (Bloomberg) -- Enron Corp. should sell Portland General Electric Co. to Oregon so state consumers can be insulated from soaring electricity prices, a congressman said. ``Purchasing PGE would give Oregon ratepayers more control by keeping its assets in Oregon, accountable solely to Oregonians,'' U.S. Representative Peter DeFazio, a Democrat from Springfield, Oregon, said in a letter to Governor John Kitzhaber. The governor is considering DeFazio's proposal, said Kitzhaber spokesman Kevin Smith. Last month, Houston-based Enron, the biggest energy trader, agreed to cancel the $3.1 billion sale of Portland General, a utility with more than 700,000 Oregon customers, to Sierra Pacific Resources of Reno, Nevada. Enron and Sierra Pacific blamed laws spawned by high power prices and electricity shortages in the West for the sale's collapse. ``We are pleased to keep Portland General in our asset portfolio because it's a solid earnings performer,'' Enron spokeswoman Karen Denne said. ``If approached by a buyer who recognizes its value, we'd consider selling it.'' She declined to comment on a potential bid by Oregon. The state should act swiftly, DeFazio said, citing press reports that the U.K.'s Scottish Power Plc, owner of PacifiCorp, the largest utility in the U.S Northwest, may bid for Portland General. Scottish Power, based in Glasgow, Scotland, would have more than 70 percent of Oregon electricity customers if it added Portland General, raising ``serious regulatory concerns about market power,'' he said. Bond Issue Oregon could issue bonds to purchase Portland General, using the utility's profits to pay the debt, DeFazio said. The state might run it as a public utility or a cooperative, he said. Enron and Sierra Pacific called off the Portland General sale because of laws passed by Nevada and California legislators that slow the deregulation of their wholesale power markets. California and Nevada have blocked sales of power plants by utilities. Sierra Pacific had to sell a stake in a Nevada power plant that sells power to California to win regulatory approval of the Portland General purchase. Average power prices on the California-Oregon border this year have soared ninefold to $296.34 a megawatt hour over the year- earlier period. A megawatt hour can light 750 average California homes for an hour. Shares of Enron fell $1.76 to $$56.99. They've fallen 31 percent this year. Sierra Pacific rose 9 cents to $16.09. Scottish Power rose 9 pence to 492 ($7) in London. Enron to Provide Gas Prices to NGX, Drops Lawsuit (Update1) 2001-05-15 16:26 (New York) Enron to Provide Gas Prices to NGX, Drops Lawsuit (Update1) (Adds closing share price.) Houston, May 15 (Bloomberg) -- Enron Corp., the world's biggest energy trader, agreed to provide natural-gas pricing information to NGX Canada Inc. and drop a C$100 million ($64.7 million) suit against the Canadian gas exchange. Enron sued NGX in November after the Internet exchange, a unit of the company that owns the Stockholm Stock Exchange, changed providers of its gas-pricing data and didn't include trades on EnronOnline, Enron's Internet exchange, when calculating gas-price indexes. Calgary-based NGX agreed to include EnronOnline trades in calculating its Alberta Gas Price Indices by August, Enron spokesman Eric Thode said. NGX, owned by Stockholm's OM Gruppen AB, is used by about 90 percent of Canadian gas traders, and many traders use EnronOnline to sell gas from western Canada, the biggest supplier of the cleaner-burning fuel to the U.S. Houston-based Enron fell $1.76 to $56.99.
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