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 BROOKLYN, N.Y., Aug. 23 /PRNewswire/ -- Brooklyn Union Gas announced today that it will open a New York-based market hub for buyers and sellers of natural gas in the Northeastern United States. The New York hub will offer balancing, exchange, and title-transfer services, and will benefit both Brooklyn Union customers and shareholders. Hub operations are scheduled to begin on Oct. 1, 1993.
 A hub is a place where gas trades physically and financially, including paper trades such as futures contracts and exchanges. A hub matches buyers and sellers. The creation of the market hub by Brooklyn Union is a natural evolution for the company. Brooklyn Union has an innovative track record in taking advantage of the new policies implemented by the Federal Energy Regulatory Commission to restructure the gas industry, culminating in FERC Order 636. For example, Brooklyn Union was one of the first gas utilities in the country to purchase gas directly in the field on a long-term basis, replacing gas previously purchased from pipeline companies.
 Over the past several years, Brooklyn Union has been on the leading edge in developing other major new initiatives, including diversification of its supply portfolio and delivery services, securing gas from Canada through the Boundary Gas and Iroquois projects, improving it gas-storage and peaking capacity, obtaining additional pipeline connections into the New York area, and offering transportation and balancing services. Brooklyn Union will be a shipper on the proposed Liberty Pipeline project, which will bring additional supply to Brooklyn Union's service territory. Brooklyn Union also is a sponsor of the Mayflower Gas Transmission System, a new 200-mile pipeline that will connect with the Iroquois pipeline and expand markets from upstate New York to the New England area.
 Currently, Brooklyn Union has interconnections and access to six different pipelines in the New York area, as well as substantial storage and peaking capacity. "The new market hub will enhance our competitive position in our core business area and will put us in an ideal strategic position to provide reliable transportation, balancing and exchange services to both marketers and consumers in the Northeast," said Robert B. Catell, president and chief executive officer of Brooklyn Union. "We will be able to draw upon the considerable resources and expertise that Brooklyn Union has developed in the areas of fuel supply, transportation, and gas trading. The hub will cut transaction costs and give both buyers and sellers of natural gas more reliability and efficiency. It is another step in our becoming a major energy company in the Northeast."
 A general manager at Brooklyn Union, Orlando M. Magnani, who has an extensive background in developing the company's gas-supply portfolio, will head the group responsible for hub activities.
 -0- 8/23/93
 /CONTACT: Brooklyn Union Gas corporate communications, 718-403-2503/

CO: Brooklyn Union Gas ST: New York IN: OIL SU:

SM-TS -- NY006 -- 4933 08/23/93 09:04 EDT
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Publication:PR Newswire
Date:Aug 23, 1993
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