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ENRON REACHES AGREEMENT ON A MEMORANDUM OF UNDERSTANDING TO DEVELOP LIQUEFIED NATURAL GAS PROJECT IN YEMEN

 HOUSTON, Nov. 11 /PRNewswire/ -- Enron Corp. (NYSE: ENE) announced today it has reached agreement on a memorandum of understanding with the General Gas Corporation of Yemen relating to the development of the government's gas into liquefied natural gas (LNG). When finalized, the project would involve the supply of natural gas from the General Gas Corporation of Yemen, the transmission of the gas through a 250-mile pipeline to an export terminal located on the Yemen coast, the treatment and liquefaction of the gas and the long-term marketing of LNG. It also would involve the commencement of a gas transmission system in the country for natural gas supply to industrial consumption.
 Enron would design, construct and operate the liquefaction facility as well as the pipelines and LNG export terminal. It is anticipated that an Enron subsidiary, to be established, would purchase the approximately 5 million tons of LNG per year that would be produced at the plant and would resell the LNG in the traditional Asian LNG market and possibly to potential new power markets being developed in India and China by Enron and others. Enron also would sell on the open market any associated hydrocarbons produced as natural gas liquids in the gas processing facilities.
 "We are very excited about the opportunities that a project of this magnitude provides Enron," said Kenneth L. Lay, chairman and CEO of Enron Corp. "This project will substantially increase our gas supply capabilities in the international marketplace."
 The parties will work toward signing an implementation agreement within 12 months, to encompass governmental approvals to design, construct, own and operate the project as well as to export LNG and natural gas liquids from the Republic of Yemen.
 Enron Corp., America's leading natural gas company with approximately $11 billion in assets, operates one of the largest natural gas transmission systems in the world totaling 44,000 miles on two continents; 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 world, with extensive experience in combined heat and power installations. Enron Corp. is traded under the ticker symbol, "ENE."
 -0- 11/11/93
 /CONTACT: Diane Bazelides of Enron Corp., 713-853-6285/
 (ENE)


CO: Enron Corp. ST: Illinois IN: OIL SU:

WB -- NY059 -- 3312 11/11/93 14:49 EST
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Publication:PR Newswire
Date:Nov 11, 1993
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