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Enron Mail |
Tom - another strike thrown at the entrenched players! Keep this up and you
guys will control every transportation asset in the UK. I am looking forward to moving our transportation business into continental Europe and South Africa. Congratulations to you and your team. Keep the pressure on. George Tom Kearney 09/01/2000 12:26 PM To: Stuart Staley/LON/ECT@ECT, George McClellan/HOU/ECT@ECT cc: Stephen Pirozzi/LON/ECT@ECT, John Moran/LON/ECT@ECT, Riaz Rizvi/LON/ECT@ECT, Pierre Aury/LON/ECT@ECT, Chris Connelly/LON/ECT@ECT, Tiffany Cochran/LON/ECT@ECT, Elizabeth McCarthy/LON/ECT@ECT, Jez Peters/LON/ECT@ECT, Peter Bradley/LON/ECT@ECT, Lisa Kent/LON/ECT@ECT, Scott Longmore/LON/ECT@ECT, Kenny Nicoll/LON/ECT@ECT, Candace Parker/LON/ECT@ECT, Cornelia Luptowitsch/LON/ECT@ECT, John Sherriff/LON/ECT@ECT, Michael R Brown/LON/ECT@ECT, Paul Chivers/LON/ECT@ECT, Robert Quick/LON/ECT@ECT, Tani Nath/LON/ECT@ECT, Olivier Herbelot/LON/ECT@ECT, Anne Edgley/LON/ECT@ECT, Moises Woll/LON/ECT@ECT, Otto Von Schwerin/LON/ECT@ECT, Dale Surbey/LON/ECT@ECT, Steve W Young/LON/ECT@ECT, Matthew Landy/OSL/ECT@ECT, Samuel Grossman/LON/ECT@ECT, James Sandt/LON/ECT@ECT, Mahesh Lakhani/LON/ECT@ECT, Angie Collins/HOU/ECT@ECT, Matthew Arnold/HOU/ECT@ECT, Meindert Witteveen/LON/ECT@ECT, Mark Schroeder/LON/ECT@ECT, Paul Dawson/Govt. Affairs/LON/ECT@ECT, Andrew Morrison/LON/ECT@ECT Subject: SIGNED: Redcar Throughput Services Agreement On August 31 (yesterday) we signed an Agreement with Corus UK Limited (formerly British Steel) for Throughput Services at the Redcar Facility in northeastern England. In exchange for a UKo2.5 million prepay to cover the cost of 750,000 tons of planned imports to Redcar, the deal gives Enron: the right but not the obligation to import up to all available third party capacity (ca. 2 million tons per year) at the Redcar Facility for a term of 5 years; through an incentivised price schedule, a throughput rate that falls with each vessel which passes through the facility; a price schedule that is not adjusted for inflation during the entire 5 year contract term; the unrestricted right to resell any or all slots to third parties during the 5 year contract term; Coupled with our recent deal with Immingham (5 years of free options for the full coal import capacity at new HIT Terminal), Enron Coal Services has a unique and unrivalled position in ports and rail vis-a-vis all the major UK coal importers. Together with the recent Freightliner deal, Enron has constructed the lowest cost and longest term "Coal Pipeline" to the major UK coal-fired generators (pls. see attached map) As a result, Enron is currently the only coal supplier in the UK with: 5 year call options on the available capacity of Redcar and HIT, the two most important coal import facilities in the UK; the ability to provide competitive rail to our customers from Redcar and Immingham. We have opted not to publicise this transaction in order not to spook our current and potential clients in the Aire and Trent Valleys. We would prefer the market to continue to think that we are offering aggressive multi-year delivered coal prices "because we just don't know what we are doing." Thanks for keeping this quiet. Many thanks to Steve Pirozzi, John Moran, Pierre Aury, Cornelia Luptowitsch, Chris Connelly, Robert Quick, Matt Arnold, Stu Staley and the entire Enron Coal Team!
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