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CONSOLIDATED NATURAL GAS AND TEXACO STUDYING FEASIBILITY OF NEW GAS MARKET HUB IN NORTHEAST

 PITTSBURGH, Nov. 11 /PRNewswire/ -- Consolidated Natural Gas Company and Texaco announced today that they are studying the feasibility of creating a new natural gas market hub that would serve the northeastern United States.
 The hub would be established on the system of Consolidated's interstate pipeline subsidiary, CNG Transmission Corporation, and would be operated jointly by Texaco's Sabine Pipe Line Company and CNG Transmission.
 Sabine Pipe Line, a wholly-owned Texaco subsidiary, operates an interstate gas pipeline in Texas, Louisiana and in the Gulf of Mexico. Sabine is also the operator of the Henry Hub, the major natural gas marketing center and supply aggregation point in Louisiana. Since 1990, the Henry Hub has served as the delivery point for natural gas traded on the futures market at the New York Mercantile Exchange.
 CNG Transmission operates an interstate pipeline and large gas storage fields with facilities in six states -- Ohio, Pennsylvania, New York, West Virginia, Virginia and Maryland. Consolidated's pipelines interconnect with virtually all major pipelines serving the Northeast, including Tennessee Gas Pipeline, Transco, Texas Eastern Transmission, Texas Gas Transmission, Columbia Gas Transmission, ANR Pipeline, Panhandle Eastern Pipe Line and National Fuel Gas. CNG Transmission also receives natural gas from Canada through the Iroquois Pipeline and the Niagara Import Project.
 "Consolidated Natural Gas and Sabine Pipe Line believe that the experience and assets of both parties could make the CNG Transmission/Sabine Pipe Line combination a pre-eminent provider of hub services in the Northeast," said Jagjit S. Yadav, president of Sabine Pipe Line. "An efficiently run hub in a key marketing area, such as the Northeast, would have major significance for all segments of the natural gas industry in the post-636 era."
 George A. Davidson, Jr., chairman and CEO of Consolidated, said that "CNG Transmission's location, numerous interconnections with other pipelines, and extensive storage assets make CNG Transmission uniquely qualified to establish a hub to serve the Northeast. We are very pleased with the prospect of partnering with a company of Sabine Pipe Line's experience and credibility." Mr. Davidson also noted that a hub on the CNG Transmission system would be of great value to the entire Consolidated Natural Gas system and its customers.
 CNG Transmission and Sabine Pipe Line are expected to offer a complete range of administrative and operational hub services to major utility companies, end users and others throughout the Northeast.
 Among other issues, the feasibility study is intended to identify products and services available to customers and to determine whether hubs should be set up at several locations on CNG Transmission's system, or if a "Super Hub" system involving several pipeline interconnects should be established. The feasibility study is expected to be completed by year-end.
 -0- 11/11/93
 /CONTACT: Cynthia Navadeh of CNG, 412-227-1442, or Maripat Riccardello of Texaco, 713-752-6461/
 (CNG TX)


CO: Consolidated Natural Gas Company; Texaco ST: Pennsylvania, New York IN: OIL SU:

LG -- NY037 -- 3207 11/11/93 11:59 EST
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Publication:PR Newswire
Date:Nov 11, 1993
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