Texaco Press Release - Texaco and Enron Form Joint Venture to Combine Louisiana Intrastate Pipeline
FOR RELEASE: TUESDAY, FEBRUARY, 15, 2000.
HOUSTON, Feb. 15 - Texaco and Enron North America, a subsidiary of Enron Corp., today announced the formation of Bridgeline Holdings, L.P., a joint venture that combines the companies' intrastate pipeline and storage businesses in southeast Louisiana, which are Bridgeline and Louisiana Resources Company, respectively. The joint venture will be effective March 1, 2000.
Bridgeline Holdings, to be headquartered in Houston, will have combined facilities consisting of more than 1,000 miles of transmission and distribution pipeline, 7 billion cubic feet (Bcf) of sdome storage capacity, with an additional 6 Bcf in development, and 33,050 horsepower of compression. The combined system will have a diversified natural gas supply, high and low pressure operating capabilities and access to the interstate pipeline grid in south Louisiana and the Henry Hub. Bridgeline Holdings expects to have sales of more than 1 Bcf of natural gas per day.
In making the announcement, Terry F. Hudgens, President of Texaco Natural Gas Inc., said, "The formation of this joint venture reflects a continuation of Texaco's long-term commitment to the industrial and utility markets of south Louisiana. As the leading marketer of natural gas and natural gas services in this area, Texaco is excited about combining the strengths of Bridgeline and Louisiana Resources Company to enhance the products and services we offer to customers in this increasingly competitive market."
"By combining Enron's trading, risk management and financial expertise with Texaco's marketing franchise, we will be able to expand our strategic position and optimize the gas supply for customers," said Cliff Baxter, Chairman and CEO of Enron North America. "Bridgeline Holdings will have greater overall system flexibility that will dramatically improve operating efficiencies."
Texaco has operations in more than 150 countries and had 1999 revenues of more than $35 billion. The company and its affiliates find and produce crude oil and natural gas, manufacture and market high-quality fuel and lubricant products; operate transportation, trading and distribution facilities; and produce alternate forms of energy for power and manufacturing. For more information on Texaco, visit the company's website at www.texaco.com.
Enron is one of the world's leading electricity, natural gas and communications companies. The company, which owns approximately $34 billion in energy and communications assets, produces electricity and natural gas, develops, constructs and operates energy facilities worldwide, delivers physical commodities and financial and risk management services to customers around the world, and is developing an intelligent network platform to facilitate online business. Enron's Internet address is www.enron.com, and the stock is traded under the ticker symbol "ENE."
Editor's Note: A fact sheet and a map of the consolidated pipeline system are available upon request.
Updated: February 2000