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ENRON GAS SERVICES CORP. SIGNS LETTER OF INTENT WITH THE WILLIAMS COMPANIES TO ACQUIRE LOUISIANA RESOURCES COMPANY

 HOUSTON, Feb. 11 /PRNewswire/ -- Enron Gas Services Corp. (EGS), a subsidiary of Enron Corp. (NYSE: ENE), and The Williams Companies, Inc. (Williams) announced today that they have signed a letter of intent under which EGS will acquire a subsidiary of Williams, Louisiana Resources Company, and other natural gas and gas liquids business activities in Louisiana for approximately $170 million in cash. Subject to the execution of definitive agreements and receipt of regulatory approvals, closing is tentatively scheduled to occur by March 31, 1993.
 The Louisiana operations include a 540 mile intrastate pipeline which spans the state of Louisiana and provides the basis for sales and transport service totaling approximately 730 million cubic feet per day (MMcf/d). The pipeline's major emphasis is serving the industrial complex along the Mississippi River from Baton Rouge to New Orleans. The pipeline interconnects with Henry Hub and has numerous interconnections with both interstate and intrastate pipelines. The acquisition also includes a natural gas processing business, through both a third party plant and a company owned facility, and a previously announced natural gas storage facility near Chacahoula, which is contemplated to be operational this coming heating season.
 Enron plans to finance a substantial portion of the acquisition through an off-balance sheet, off-credit financing structure through a financial institution. Debt will be structured on a non-recourse basis to Enron. Thus, the ultimate impact of the transaction on Enron's debt ratio or total obligations is expected to be minimal.
 "We are pleased to add these assets to the EGS portfolio and are excited to extend our services to our new Louisiana customers," said Jeffrey K. Skilling, chairman and CEO of EGS. "These operations are a significant strategic addition to the capabilities of EGS and our growth. Upon completion of the transaction, we will have substantial intrastate facilities interconnecting with virtually every interstate and intrastate market accessing Texas or Louisiana. The physical access to the Henry Hub in Louisiana will greatly enhance our ability to meet our customers' needs for both physical and financial services. We also will provide our new customers with flexible storage and incremental gas processing services."
 In addition, recognizing the enormous potential for the use of natural gas for electric generation in the Pacific Northwest and the Rocky Mountains, EGS and Williams have opened discussions regarding an arrangement to market natural gas in these regions. The arrangement will take advantage of Enron's expertise in marketing gas for electric power generation through the excellent transportation system provided by Williams' Northwest Pipeline system.
 Enron Corp. is America's leading natural gas company with approximately $11 billion in assets, operates one of the largest natural gas transmission systems totaling 43,000 miles worldwide; is the largest purchaser and marketer of long-term natural gas supplies in North America; markets natural gas liquids, MTBE and methanol worldwide; owns 80 percent of Enron Oil & Gas Company, one of the largest independent (non-integrated) natural gas exploration and production companies in the United States; and is one of the largest independent developers and producers of electricity in the United States and the United Kingdom, with extensive experience in combined heat and power installations. Enron Corp. is traded under the ticker symbol, "ENE."
 -0- 2/11/93
 /CONTACT: Diane Bazelides of Enron Gas Services Corp., 713-853-6285/
 (ENE WMB)


CO: Enron Gas Services Corp.; Williams Companies, Inc. ST: Texas, Louisiana IN: OIL SU: TNM

KD -- NY045 -- 5712 02/11/93 12:37 EST
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Date:Feb 11, 1993
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