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Enron Mail |
---------------------- Forwarded by Scott Neal/HOU/ECT on 06/19/2000 05:05 PM
--------------------------- Barry Steinhart@ENRON 06/07/2000 02:32 PM To: Jeffrey A Shankman/HOU/ECT@ECT, Scott Neal/HOU/ECT@ECT cc: Subject: LNG: FRANCE: PDVSA sees Enron LNG deal soon, seeks gas funds. FYI ---------------------- Forwarded by Barry Steinhart/Corp/Enron on 06/07/2000 02:30 PM --------------------------- djcustomclips@djinteractive.com on 06/07/2000 02:55:23 PM Please respond to nobody@mail1.djnr.com To: 196816@mailman.enron.com cc: Subject: LNG: FRANCE: PDVSA sees Enron LNG deal soon, seeks gas funds. FRANCE: PDVSA sees Enron LNG deal soon, seeks gas funds. 06/07/2000 Reuters English News Service (C) Reuters Limited 2000. NICE, France, June 7 (Reuters) - Venezuela's state oil company Petroleos de Venezuela (PDVSA) said on Wednesday it expected to sign a contract with U.S. energy company Enron by June 30 to construct an LNG plant in Jose with an annual capacity of two million tonnes. It has signed an agreement with Royal Dutch Shell , ExxonMobil and Mitsubishi to begin construction of a four-million-tonne LNG plant in Paria by end of the year. "We could sign the contract to start the project (with Enron) by June 30...The plant should be operational by 2004," Domingo Marsicobetre, chairman of PDVSA's gas division, told reporters at the world gas congress in Nice. "The project development agreement was signed with Shell, Exxon and Mitsubishi last month. In September we will declare the viability of the project and then create a (separate) Venezuelan LNG company (to run it). The milestone is December," Marsicobetre said. The Paria plant was expected to be operational by 2005, he said, adding that the consortium hoped to explore further oil and gas in the Orinoco delta platform, south of Trinidad, to add a second and third train to the plant. "In August a decision will be taken by the shareholders," he said. PDVSA would supply associated gas to the Jose plant, in which it would also be a shareholder. The facility aimed to export mainly to the Caribbean and the United States, he said. The Paria plant was designed to export LNG to the north-east United States, Spain and Portugal. Marsicobetre said PDVSA Gas was seeking between $6 billion and $10 billion in private investment to develop the production of non-associated gas, its LNG projects and the Venezuelan gas grid. Expanding non-associated gas and the gas grid would each absorb 30 percent of that total sum while the two LNG facilities would need some $2.6 million. The cost of developing oil and gas production in the delta platform was not included in that calculation, PDVSA Gas executive Nelson Mava told reporters. "If we move in a fast track we can have twice that investment," Mava said. He said Venezuela, the world's seventh largest gas producer with proven reserves of 146 trillion cubic feet (tcf), was counting on the development of non-associated gas to meet rising domestic demand. Venezuelan gas consumption was forecast to more than double by 2009, rising to 4.2 billion cubic feet a day from the current level of 1.8 billion. That meant the percentage of gas in the fuel mix would rise to 55 percent from 42, Mava said. Of the current 142 tcf output, 132 tcf was associated and 14 non-associated. But there were unexplored reserves of non-associated gas of 6-20 tcf onshore and 40-60 offshore, he said. ((Gillian Handyside. Paris newsroom tel +33 1 4221 5343, fax +33 1 4236 1072, gillian.handyside@reuters.com)). Folder Name: LNG Relevance Score on Scale of 100: 90 ______________________________________________________________________ To review or revise your folder, visit http://www.djinteractive.com or contact Dow Jones Customer Service by e-mail at custom.news@bis.dowjones.com or by phone at 800-369-7466. (Outside the U.S. and Canada, call 609-452-1511 or contact your local sales representative.) ______________________________________________________________________ Copyright © 2000 Dow Jones & Company, Inc. All Rights Reserved
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