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Enron Mail |
=20 BUSINESS HIGHLIGHTS Enron Global Markets EGM's global crude and products group closed its largest trades to date wit= h EOTT Energy Partners, L.P. (NYSE: EOT) on June 29,2001. Enron Gas Liquid= s, Inc. ("EGLI") is the counterparty to a 10-year toll conversion agreement= and a 10-year storage capacity agreement that also provides transportation= . The toll conversion agreement calls for EGLI to deliver a combination of= feedstocks (methanol, natural gas, and normal butane) to be converted into= various offtake products, primarily MTBE.=20 As a part of the 10-year conversion agreement, EGLI has the option to conve= rt the facility into an Iso Octane plant. The option to convert is EGLI's = sole and exclusive right. In addition, the call helps to mitigate the regu= latory risk associated with the MTBE market. Prior to the close of the 10-year conversion and storage capacity agreement= s, Enron's corporate development group organized the sale of the hydrocarbo= n-processing complex in Morgan's Point, Texas, and a liquids pipeline grid = system to EOTT for approximately $120 million. The asset sale was predicat= ed on the agreements to be entered into between EGLI and EOTT. =20 These combined agreements represent EGM's largest transaction to date. EGM Fundamentals EGM Fundamentals welcomes Andrew Hill to the Houston office for a six-month= assignment from London. Andrew joined EGM in March as a Senior Specialist= and has been instrumental in developing the growing range of EGM Fundament= als publications such as Critical Mass and The Week Ahead. In Houston, And= rew will be working with Richard Lassander to manage analysis of the crude = and products markets. Prior to joining EGM, Andrew worked as a management = consultant specializing in Latin America with Wood McKenzie. EGM Fundamentals has begun analysis of domestic freight markets. This new = effort, managed by Jeff Andrews, is being coordinated with Matt Arnold's fo= rward trading group in Enron Freight Markets (EFM). Current analysis is fo= cused on over-the-road trucking, following the initial commercial focus of = EFM, and the development of diesel hedging strategies. Related projects in= clude modeling the seasonality of trucking demand and diesel fuel consumpti= on and forecasting on-road diesel prices. Within the next three to four we= eks, analysis will begin of the intermodal freight network. Interested par= ties should watch the EGM Fundamentals intranet site (<http://egmfundy.corp= .enron.com<) for updates. East Power Origination The Sand Hill Energy Center in Austin was dedicated on Wednesday, July 11th= at 10:00 am. The $93.7 million project is the first peaking facility of i= ts kind in Texas to be constructed with selective catalytic reduction pollu= tion control equipment that reduces the nitrogen oxide (NOx) emission rate = by 80 percent. NOx emissions from the units are 5 parts per million (ppm),= which is considerably less than the amounts allowed by state and federal r= egulations. Congratulations to the development team! IN THE NEWS "For California to continue this bogus claim of $8.9 billion, I think just = shows that they are not interested in any kind of a settlement," Enron spok= esman Mark Palmer said. "They are just interested in creating a whipping po= st. The last thing that the political leadership in California wants to do = is take responsibility for the problem they created." Houston Chronicle, J= uly 10, 2001. WELCOME New Hires EGM - Todd Litton EIM - Ayesha Kanji, Matt Christiansen ENA - Alex McElreath, Chris Czuppon, Joanne Rozycki, Todd Callaway, Lisa K= oerselman, Christopher Davis, Sandra Haldeman Transfers (to or within) ENA - Michael Newlin, John Garrison, Cheryl White, Diane Cook, Jennifer Mar= tinez EIM - Sylvia Sauseda EGM - John Cote, Laura Mireles, Tim Norton, Doris Wilhoite NUGGETS & NOTES Travel tip of the week: Out of Town Calling. Direct calls from hotels are not encouraged. When call= ing to the Enron Building, 3 Allen Center or Omaha, use of the 1-800-97-ENR= ON is often the most cost effective method. For other locations, dial 1-80= 0-96-ENRON, enter the number you are calling and then your AT&T corporate c= alling card number. Please contact your Lan support department for 1-800 d= ial-in numbers for cost effective remote connections. Global Strategic Sourcing: UPS As part of the recently negotiated agreement with United Parcel Service (UP= S), Enron employees may now utilize two new letter centers when sending pac= kages after hours. These letter centers are located in Three Allen Center,= on the ground level, behind the down escalator, near the U.S. Postal Servi= ces self-service area and in the Enron Building, at the back of the escalat= ors near the automated teller machine. =20 Letter-sized envelopes, as well as boxes up to 18"x 13" x 3" can be shipped= via Next-Day Air, Second-Day Air, Third-Day Select, UPS International and = UPS World-Wide Express Service. Pick up times at the letter centers are 7:= 45 p.m. for Three Allen Center and 8:00 p.m. for the Enron Building, Monday= through Friday. Contact: Glenn Lewis, Global Strategic Sourcing contract manager at 713-646= -7512. EnronOnline Statistics Below are the latest figures for EnronOnline as of July 12, 2001: =09Total Life to Date Transactions < 1,180,000 Life to Date Notional Value of Transactions < $696 billion NEWS FROM THE GLOBAL FLASH Enron Secures First Industrial Customer Gas Supply Deal In Germany=20 Congratulations to the German Gas Origination team for closing its first ph= ysical supply contract with an industrial customer. The customer, based in= Stendal, Germany, operates steam boilers for a milk factory and will be ta= king gas from Enron for a contract of 9.3 MW of interruptible one-year base= load. In connection with this supply contract the Continental Gas Trading team co= mpleted a gas supply transaction, the first inside Germany by a non-incumbe= nt player, with EnBW at Steinitz, to overcome capacity constraints expected= in Q3 this year. Due to the fragmented gas industry in Germany, Enron had= to secure transport with no less than four network operators inside German= y in order to close the gas supply deal. "Although we are happy that we ha= ve successfully secured all necessary transportation to fulfill our contrac= tual obligations, it was quite a challenge to reach agreement with four net= work operators -- while this was a transaction only within Germany, the neg= otiation with the network operators was as complex as securing gas transpor= t from Ireland through the UK and Belgium into France," commented Carsten H= aack, who closed this deal together with Helge-Juergen Beil, Ulrich Finke a= nd Gordon Smith from the German Gas Origination team. Another important el= ement of the deal is that the team succeeded in establishing the first tran= sportation contract for VNG, Germany's largest German import company after = Ruhrgas. "This contract will serve as a useful basis for future gas deals, = especially in East Germany, " said Haack. "But more importantly, this deal = will send a message to the market that once again Enron has proven to custo= mers it can deliver on its promises and, of equal importance, that network = operators had better take our transportation requests seriously!" he added. ETOL Celebrates New Deals With Du Pont Congratulations to Enron Teesside Operations Ltd (ETOL) for signing a serie= s of deals with chemical giant Du Pont for supplies to its facilities at Wi= lton International. A new arrangement between the two parties means Enron will supply two milli= on tonnes of steam and 30 MW of electricity a year to Du Pont's nylon plant= s. New agreements have also been reached for gas supplies, and for the prov= ision of a number of key site services including pipeline maintenance, secu= rity and emergency response. Paul Gavens, CEO of ETOL, said: "Securing an exclusive long-term supply agr= eement of this nature with one of our largest customers is a fantastic achi= evement for ETOL. The new arrangements extend the terms of our current cont= ract for steam and power to 2010, restructure the pricing arrangements and = offer the opportunity for adding value to both companies by optimizing the = operation of their respective assets." Enron's Northernmost Partner! Enron Nordic Energy has entered into a partnership agreement with Varanger = Kraft AS. Under the terms of the deal, Enron Nordic Energy will assist Var= anger in hedging its power sales, power prices and area prices. The partne= rship will also involve the development of a risk strategy for Varanger and= the provision of weather risk products relating to water flow and temperat= ure risk. In addition, the agreement will open opportunities for Enron to = develop contacts with Varanger Kraft's Russian partners and the Russian mar= ket generally. Following a deal with Luster Energiverk, this is the second= such agreement closed by Enron Nordic Energy in recent weeks. This is our first partner in the Nordic region with established relationshi= ps in Russia, through its ownership of a grid connected to Russia. Varange= r has hydro power plants on the Passvik river near the Russian border. As = the Passvik river flows on both sides of the border, Varanger works in coop= eration with Russian partners to manage the water storage.=20 LEGAL STUFF The information contained in this newsletter is confidential and proprietar= y to Enron Corp. and its subsidiaries. It is intended for internal use onl= y and should not be disclosed. <Embedded Paintbrush Picture<
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