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OCCIDENTAL PETROLEUM'S MIDCON UNIT TO SUPPLY NATURAL GAS FOR COGENERATION PLANTS IN NEW YORK STATE

 OCCIDENTAL PETROLEUM'S MIDCON UNIT TO SUPPLY NATURAL GAS
 FOR COGENERATION PLANTS IN NEW YORK STATE
 LOMBARD, Ill., April 2 /PRNewswire/ -- MidCon Corp. announced today that its marketing affiliate, MidCon Marketing Corp., has signed two 15-year agreements to supply up to 28,000 million British thermal units per day (MMBtu/day) of natural gas for cogeneration projects being developed in Steuben and Allegany Counties in New York state by Kamine Development Corp. and Besicorp Group Inc.
 MidCon Corp. is a subsidiary of Occidental Petroleum Corp. (NYSE: OXY). Kamine Development Corp. and Besicorp Group Inc. are energy project developers and have been joint owners and operators of natural gas cogeneration facilities since 1985.
 John F. Riordan, president and chief executive officer of MidCon Corp., said, "These contracts could produce revenues of approximately $740 million over the 15-year period, at a 100 percent load factor. The agreements represent MidCon Corp.'s commitment to being a strong competitor in the rapidly expanding cogeneration market." Riordan added that MidCon companies are pursuing a number of opportunities to utilize their strategically located pipelines, their access to gas supply and key markets, and their financial stability to develop supply services for major cogeneration projects.
 Under the agreements announced today, MidCon Marketing will be the exclusive supplier of up to 16,000 MMBtu/day for a 79-megawatt cogeneration project being developed near Corning in Steuben County. Electricity produced at the Corning facility will be sold to New York State Electric and Gas Corp. Up to 12,000 MMBtu/day will be supplied to a 55-megawatt project near Rossburg in Allegany County, producing electricity to be sold to Rochester Gas and Electric Corp.
 The company also has contracted to supply up to 16,000 MMBtu/day for a 79-megawatt project near Syracuse in Onondaga County, in the event that project's current gas supply contract is terminated.
 John A. McSweeney, president of MidCon Marketing, said, "With our nationwide network of supply sources and the availability of significant contract storage service, we can provide the Kamine/Besicorp facilities stable gas supplies for these projects."
 The Corning and Rossburg facilities are expected to begin commercial operations in 1994-95.
 MidCon Marketing Corp. has offices in the Chicago suburb of Lombard, as well as in Houston and Los Angeles. Kamine is located in Union, N.J., and Besicorp in Kingston, N.Y.
 -0- 4/2/92
 /CONTACT: Patricia Wees of MidCon, 708-691-2850/
 (OXY) CO: MidCon Corp.; Occidental Petroleum Corp.; Kamine Development Corp.;
 Besicorp Group Inc. ST: Illinois, New York IN: OIL SU:


GK -- NY051 -- 4446 04/02/92 14:01 EST
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Publication:PR Newswire
Date:Apr 2, 1992
Words:427
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