Printer Friendly

EXXON AND TEJAS GAS ANNOUNCE PROPOSED PIPELINE PURCHASE AND SALE

 HOUSTON, May 3 /PRNewswire/ -- Exxon Company, U.S.A. ("Exxon") and Tejas Gas Corporation ("Tejas") announced today an agreement, subject to customary due diligence, regulatory, and closing requirements, regarding the sale of substantially all of Exxon's Texas and Louisiana intrastate natural gas pipeline systems. Tejas will acquire all of the outstanding stock of Exxon Gas System, Inc., ("EGSI"), Monterey Pipeline Company ("Monterey"), Humble Gas Transmission Company, and Humble Gas System, Inc. The transaction also contemplates Tejas acquiring Exxon's West Clear Lake storage field near Houston. The closing is anticipated to take place within 90 days.
 These gas systems originally transported primarily Exxon's gas, but throughput has become increasingly dependent on third-party gas. Exxon will be continuing gas production and processing operations connected to these systems, and arrangements have been made with EGSI and Monterey to provide services to its Baytown and Baton Rouge refining and chemical plant complexes.
 There are approximately 140 people employed with the companies to be sold to Tejas. It is anticipated that a substantial number will be offered employment by Tejas. In addition, jobs will be offered by Exxon to as many employees not going to Tejas as possible. A severance program will be offered to individuals surplus to both Tejas and Exxon's needs.
 EGSI, Exxon's Texas intrastate pipeline, is a 1,600 mile transmission system located to access gas reserves in South Texas, the Texas Gulf Coast, Offshore Texas, and East Texas. In addition to services being provided to Exxon, the EGSI system provides Tejas access to markets and to additional production throughout Texas.
 Monterey, Exxon's Louisiana intrastate pipeline, is a 600 mile transmission system which in addition to providing service to Exxon, accesses natural gas markets as well as gas supplies in Louisiana.
 Tejas Gas Corporation (NYSE: TEJ, TEJPR), one of the largest independent intrastate gatherers, transporters, and marketers of natural gas volumes in the United States, currently owns or operates over 3,200 miles of pipelines with current throughput of approximately 1.3 billion cubic feet per day and 10 natural gas processing and treating plants, primarily in Texas and Louisiana. The newly acquired systems have a capacity of approximately 2.5 billion cubic feet per day of natural gas and current throughput of approximately 1.6 billion cubic feet per day.
 -0- 5/3/93
 /CONTACT: Les C. Rogers, media relations, of Exxon Company, U.S.A., 713-656-4376/
 (TEJ)


CO: Exxon Company U.S.A.; Tejas Gas Corporation ST: Texas IN: OIL SU: TNM

LR -- NY044 -- 3695 05/03/93 10:35 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 3, 1993
Words:421
Previous Article:KODAK INDEPENDENT DIRECTORS ISSUE STATEMENT
Next Article:FOREMOST CORPORATION OF AMERICA DECLARES REGULAR DIVIDEND
Topics:


Related Articles
SOUTHERN NATURAL GAS COMPANY RECEIVES FAVORABLE COURT ORDER AFFIRMING RIGHT TO TERMINATE GAS PURCHASE CONTRACT WITH EXXON
PLANS FINALIZED FOR NEW NATURAL GAS COMPANY FORMED BY SHELL AND TEJAS GAS
Exxon Affiliate Begins Production From Malaysia's Lawit Gas Field
Shell's Tejas Energy Agrees to Sell Its Transok Affiliate.
BP Amoco Buys Larger Stake in Destin Pipeline.
ExxonMobil Announces Sale of the Mobil Pipe Line Interest in Colonial Pipeline.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters