Texaco Press Release - Texaco, NGC Corporation to Create Joint Venture for Natural Gas Liquids Pipeline
FOR RELEASE: MONDAY, MAY 18, 1998.
HOUSTON, May 18 - Texaco and NGC Corporation announced today the signing of a memorandum of understanding to create a new joint venture company that will own and operate a 290-mile, bi-directional natural gas liquids (NGL) pipeline system extending from Sorrento, La., to Mont Belvieu, Texas. The transaction is subject to government approvals and the execution of definitive agreements. The joint venture company is expected to be operational by the fourth quarter of 1998.
Texaco and NGC Corporation will each contribute existing pipeline systems to the joint venture. Texaco will contribute approximately 180 miles of its TENDS (Texaco Expanded NGL Distribution System) pipeline between Sorrento and Lake Charles, La., with a line capacity of approximately 50,000 barrels per day (bpd). NGC will contribute approximately 110 miles of its 65,000 bpd NGL pipeline between Lake Charles and Mont Belvieu.
This western gateway pipeline system will connect to third party NGL storage in Sorrento, Anse La Butte and Hackberry, La. The pipeline will also connect to fractionation in Erath and Lake Charles, La., as well as Mont Belvieu, Texas. This system will provide both producers and petrochemical companies with expanded market opportunities. Additional connections and expansions to the system will be made as business conditions and opportunities warrant.
The expected increased demand for NGL, Y-grade, and propane-propylene movements between Mont Belvieu and the south Louisiana industrial corridor is expected to support the system's growth to approximately 120,000 bpd by the year 2002.
NGC Corporation is one of the country's leading marketers of energy products and services. Its leadership position in gathering, processing, independent power generation, transportation and marketing of energy commodities enables the company to offer integrated energy solutions to customers in North America and the United Kingdom. Working with strategic business partners, the company seeks to expand these services as marketing opportunities present themselves in North America and selected countries worldwide.
Texaco Natural Gas - North America is a leading marketer and transporter of natural gas and natural gas liquids. Additionally, Texaco is a world leader in the commercial development of gasification technology and is one of the top five natural gas producers in the country. A large asset base, coupled with strategic partner alliances and a strong customer focus, enables Texaco Natural Gas - North America to provide services in all aspects of the natural gas business. These services range from gathering, processing, transportation and hub services to trading, marketing and risk management.
Updated: May 1998