Re: Call from TGS for LPG Hedge

Call me when you're free and we can talk to Rolo.. I've looked at their
comments. Sara

Enron North America Corp.

From: Patricia Cini 10/18/99 04:04 PM

To: Rodolfo Freyre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Sara Shackleton/HOU/ECT@ECT, Jeff
Kabel/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
Subject: Re: Call from TGS for LPG Hedge

Rolo-

Sara and I are going to go through the comments and then get back to you very
soon on the issues.

I understand that they don't want to sign the CSA, but I am not in the
position to eliminate this because Goldman Sachs did not make them sign one.
They are partially owned by Enron and Perez Companc and both of these
companies sign ISDAs that include CSAs.

Will follow up soon.

Regards,

Pat

Rodolfo Freyre @ ENRON_DEVELOPMENT 10/18/99 03:10 PM

To: Patricia Cini/HOU/ECT@ECT
cc: Sara Shackleton/HOU/ECT@ECT, Jeff
Kabel/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
Subject: Re: Call from TGS for LPG Hedge

Pat / Sara,

I just talked to the commercial guy @ TGS. We just talked about the Credit
Support Annex (CSA)and he basically said that they have signed many ISDA's
(i.e.: with Goldman Sachs) and in none of those were they required to include
the CSA. I do not know if the CSA is a thing we do require for every
trasnsaction or not, but I see these guys unwilling to comply with the CSA.

Why don't we schedule a conference call ASAP to determine our next steps.

Rolo

To: Rodolfo Freyre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Sara Shackleton/HOU/ECT@ECT

Subject: Call from TGS for LPG Hedge

Rolo-

We received the comments from TGS regarding our ISDA format. They are making
substantial changes to the document so, I believe that we need to discuss
this and schedule a conference call with them as soon as possible. Please
call me so, we can talk about setting this up.

Regards,

Pat

Rodolfo Freyre @ ENRON_DEVELOPMENT 10/15/99 03:52 PM

To: Patricia Cini@ECT
cc:
Subject: Call from TGS for LPG Hedge

FYI
---------------------- Forwarded by Rodolfo Freyre/ENRON_DEVELOPMENT on
10/15/99 05:52 PM ---------------------------
Rodolfo Freyre 10/14/99 10:44 AM

To: Jeff Kabel/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Federico
Cerisoli/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Don
Black/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Joe
Kishkill/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Brian
Swinford/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Maria Ines
Granado/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:

Subject: Call from TGS for LPG Hedge

Eduardo Pawlusek (TGS) just called me and we talked about the LPG Hedge. I
did not tell him anything about the "imbedded loan structure" we are thinking
of.

ISDA Document: He told me that his lawyer (Enrique Prini) is reviewing the
ISDA and will send us the comments on Monday. The problem is that the lawyer
is leaving on Monday for two weeks. I told him that he should have Chris
Dougall (who already knows our lawyers) take over while Enrique is out of
town.
Timing: TGS is looking for a swap starting November 1, 1999 until December
31, 2000 (14 months). The problem is that we have to get the ISDA signed
before we do any transaction, and given that their lawyer will be out, I am
not sure we will be able to sign it before end of this month.
Volume: TGS sells 200,000 tons/yr of LPG. Approximately 30% of that
(60,000tons/yr) is what TGS commercialises. They are analysing two scenarios:
2,500 tons/month (35,000 tons/14months),
1,800 tons/month (25,200 tons/14months).
Price: He wants us to send him the terms and conditions of a swap ASAP. He
wants price, settlements and index to be defined. He also said they will be
asking the banks to send them a quote.

With regards to the loan we need to evaluate the amount cash involved in the
swap. Then we can determine an appropriate loan amount. Jeff talked with
Brian Swinford about this structure.

Rolo