LNG Strategy

Clay and I have completed our review visits in Korea and Japan. I will be
available in Houston starting the afternoom of 14 June and continuing through
about end-June for PRC's and to discuss and finalize the Pacific Basin LNG
strategy and organization issues that we highlighted when you were in Korea.
As we discussed in Korea, I believe that if we intend to develop a Pacific
Basin LNG business, (including the US west coast), we need to define and
articulate a vision and strategy to the LNG group by the end of June or we
risk having our Pacific team members drift away to our competitors.

There is a lot happening in the Pacific and our key people are well known and
well thought of. There is a genuine feeling within the team at this time
that Enron's LNG focus is on North America/Atlantic basin and that there is
little top management support for the commitment of time and resources to
build a more global business.

I'd like to set up a meeting with you to discuss this, preferably on 21 or 22
June (i.e., right after the PRC reviews). I need some advance warning on a
date because I want Clay and Wayne to be there and they both have a heavy
travel schedule to manage.

Thanks,

Rick