Texaco Press Release - Texaco and Partners Close Purchase of South Korean Power Plants
FOR RELEASE: THURSDAY, AUGUST 31, 2000
WHITE PLAINS, N.Y., August 31, 2000 - Texaco today announced the financial closing and purchase by LG-Power of the Anyang and Buchon power plants and district heating facilities in Gyonggi Province near Seoul, South Korea from state-owned Korea Electric Power Corp. (KEPCO) and Korea District Heating Corp. (KDHC).
Ownership of the two liquefied natural gas-fueled plants and district heating facilities will transfer from KEPCO and KDHC to operating company LG-Power on September 1. LG-Power is a joint venture of Texaco (25%); LG-Caltex Oil Corp (26%); LG-Caltex Gas (24.5%) and KukDong City Gas (24.5%).
Commenting on the announcement, President of Texaco Power and Gasification, James C. Houck said, "The Anyang and Buchon plants are significant additions to Texaco's power portfolio and the acquisition marks an important step in the implementation of our strategy to become a global energy provider.
"We look forward to providing power and heat to consumers in South Korea and to playing an on-going role in the privatization of the country's power industry."
Power from Anyang and Buchon, which have a combined output of 951 megawatts and have been in operation since 1993, will be purchased by KEPCO under an 18-year power purchase agreement signed June 22, 2000. The plants' combined 1,077 giga-calories per hour heat output will be sold to more than 170,000 households in the region. Fuel will be supplied to the plant under a six-year contract with Korea Gas Company.
Note: This press release contains a number of forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In particular, statements made concerning Texaco's and its partners' expected performance and financial results in future periods are based upon Texaco's and its partners' current expectations and beliefs and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.
The following factors known to Texaco and its partners, among others, could cause Texaco's and its partners' actual results to differ materially from those described in the forward-looking statements: mechanical failures; decreased demand for motor fuels, natural gas and other products; above or below-average temperatures; price fluctuations; higher costs, expenses and interest rates; price controls; environmental, health and safety regulations; and expropriation of property. In addition, you are encouraged to review Texaco's latest reports filed with the SEC, including Texaco's Annual Report on Form 10-K filed with the SEC on March 24, 2000, which describes a number of additional risks and uncertainties that could cause actual results to vary materially from those listed in the forward-looking statements made in this press release.
Updated: August 2000