LPG for China

John, Please look into this. Thanks. Jeff
---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 10/26/2000
12:18 PM ---------------------------

From: George McClellan 10/26/2000 09:32 AM

To: Jeffrey A Shankman/HOU/ECT@ECT
cc:
Subject: LPG for China

Jeff - Franz Klem of EVN is a good friend of mine - and most recently our
best customer for coal in Austria. He is real pissed at the way our LPG team
has handled the Sinopec Jingling Petchem business, and made it clear to me
that he is looking for us to hop in and lend a hand. EVN has done business
with the project, and apparently have had positive results to date.

The "Manfred" mentioned in his email is Manfred Ungetheum of our office in
Germany. I would appreciate your checking into what is going on, and why we
are not paying proper attention to these guys.

I will be in on Monday. Thanks.

George
---------------------- Forwarded by George McClellan/HOU/ECT on 10/26/2000
03:22 PM ---------------------------

Klemm Franz <Franz.Klemm@evn.at< on 10/26/2000 05:36:48 AM
To: "'gmcclel@enron.com'" <gmcclel@enron.com<
cc: "'hofer-austria@aon.at'" <hofer-austria@aon.at<
Subject: LPG for China

Dear George,

I was pleased to see you in Madrid unfortunately we had to less time for
some beers or wodkas. At the moment I am out of office for another two days,
today we have a state holiday and tomorrow I will take one day off. I have
to keep up my golfing a little bit.

George, you promised me to have a look at the LPG deliveries to China, the
situation again is as follows:

My very good friend Wolfgang Hofer has good contacts to the SINOPEC JINGLING
PETROCHEMICAL Corp., Najing, China. They plan the retrofitting and enlarging
of their polypropylen capacities for about 120.000 mtons/year. As a raw
material they need LPG and the production should start at the beginning of
2001. They want a longterm contract for 300.000 mt/y with increasing option
to 400.000 mt/y. Further they are looking for a delivery already this year
50 to 60.000 mt.
Mr. Cheng Zu Shan, the chief of planning and finance dept. was already in
Vienna and met Wolfgang Hofer. Manfred introduced Wolfgang to Tracy Wallace
and than to Eric Hanson and now we are waiting for any answer from ENRON
since weeks.

May be it is interesting for ENRON because there will be a second trading
option when Jingling offers you the products.

Please George have an eye on that business because Wolfgang has to answer
his Chinese partners very soon.

Herewith I send the name and address from Wolfgang, for the direct contact
to him:

Wolfgang Hofer
Plataverde Anstalt
Vertretungsb_ro in Tsterreich
Tel. +43 2622 663300
Fax. +43 2622 27631
GSM: +43 664 3553603
hofer-austria@aon.at <mailto:hofer-austria@aon.at<

Specification: LPG
Component VOL%
Ethane 0.31-1.15
Propane <95%
Iso-butane 0.91-1.31
n-butane 0.05-0.73
<C5 0-0.02
Copper corrosion Test 37.8 0C 1A
Total sulfide (ppm) <3
Hydrogen sulfide Nil
Free water Nil
Olefin hydrocarbon Nil
Density 15.6 0C 0.5050
Ageing Test ( 95% evaporate) 0F -40

Dear George, I thank you so much for your help, I wish you a nice weekend
and remain with best regards
Yours
Franz