press release

Texaco Press Release - Texaco, Union Carbide Sign Natural Gas Liquids Agreements

FOR IMMEDIATE RELEASE: FEBRUARY 25, 1999.

TULSA, Okla., Feb. 25 - Texaco and Union Carbide Corporation have signed long term propane, ethane and natural gasoline exchange and supply agreements, it was announced today by Terry Hudgens, President of Texaco Natural Gas and Vince Villani, Union Carbide Vice President and General Manager - Hydrocarbons.

Under the terms of the agreement, Texaco will be the major propane supplier to Union Carbide's Taft, Louisiana, chemical plant and will construct a $16.6 million pipeline to increase Texaco's capacity to transport propane to Taft. The ethane and natural gasoline will be supplied through Texaco's TENDS system (Texaco Expanded NGL Distribution System) which is a 500-mile pipeline network designed by Texaco to distribute natural gas liquids (NGLs) to growing markets across South Louisiana.

The new 29-mile pipeline will transport propane to Union Carbide from supply locations along the Mississippi River Corridor between Baton Rouge and New Orleans, Louisiana. The pipeline will be operational in first quarter of 2000.

Commenting on the agreement, Hudgens said, "The NGL supply agreements and the propane project complement Texaco's strategic commitment to build the infrastructure necessary to serve consumers and suppliers in this active area along the Mississippi River Corridor. The new pipeline will enhance our customers' access to supply sources, markets and storage."

Union Carbide's Vince Villani said, "The propane, ethane and natural gasoline exchange and sales contracts will provide Union Carbide with additional secure supplies of feedstock to satisfy expanded needs at our Taft chemical plant."

Updated: February 1999