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ANADARKO EXPANDS GAS SALES CAPACITY IN MIDWEST; GAS GATHERING SYSTEMS TO BE EXPANDED

 HOUSTON, Jan. 6 /PRNewswire/ -- Anadarko Petroleum Corporation (Anadarko) (NYSE: APC) said today that the company's gas sales capacity in the Midwest will expand significantly following execution of a one- year gas purchase agreement between Anadarko Trading Company (ATC) and PanCanadian Petroleum Company, the U.S. subsidiary of PanCanadian Petroleum Limited of Calgary.
 Beginning April 1, 1994, ATC will purchase 40 million cubic feet of gas per day (MMcf/d) from PanCanadian for sale into market areas in Illinois, Wisconsin and Minnesota generally served by Northern Natural Gas Company and other interstate pipelines.
 ATC currently markets about 100 MMcf/d of gas into the Northern Natural market area. These sales were made possible with the construction of the Hugoton Gathering System (HUGS) in southwest Kansas in 1990, which expanded Anadarko's market outlets for its gas production from the area. Total sales by ATC in 1994 are expected to average 700 MMcf/d, and the majority of that gas is delivered to midwest market areas in Michigan, Illinois, Indiana and Ohio.
 Anadarko Vice President of Marketing Richard J. Sharples said, "The Northern Natural market area offers Anadarko an important alternative market for our large Hugoton Field reserves. This contract increases our sales capacity in the market by almost 50 percent and we plan further increases."
 Anadarko also said the company will upgrade and expand existing gas gathering facilities in major producing fields in Kansas, Oklahoma and Texas. An expansion of the HUGS system in Kansas began in 1993. As a part of this strategy, Anadarko has stepped up efforts to buy third- party gas and to attract third-party gas production into its existing gas gathering systems.
 "We see gathering as a critical ingredient in efficiently managing reservoir performance and ultimate recovery of gas reserves, as well as enhancing our ability to provide superior, reliable gas supply service to our customers," Sharples said.
 Since 1988, Anadarko has invested about $50 million to build or acquire gas gathering pipeline systems. Anadarko currently owns and operates four major gas gathering systems in core producing areas and the company operates or has interests in 13 other systems, which connect about 200 MMcf/d of Anadarko's gas production to 14 separate interstate and seven intrastate pipeline systems.
 NOTE: Anadarko Petroleum Corporation is one of the nation's largest independent natural gas and crude oil exploration and production companies. Anadarko's exploration, development and production activities are concentrated in North America's primary geologic basins onshore and offshore. Exploration efforts also are conducted in frontier areas of the United States and overseas. Anadarko has activities in 20 states and three Canadian provinces.
 -0- 1/6/94
 /CONTACT: A. Paul Taylor Jr., Anadarko Petroleum Corporation, 713-875-1101/
 (APC) CO: Anadarko Petroleum Corporation ST: Texas IN: OIL SU:


WB -- NY104 -- 9950 01/06/94 18:00 EST
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Publication:PR Newswire
Date:Jan 6, 1994
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