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FLORIDA GAS REQUESTS APPROVAL TO ACQUIRE INTEREST IN MOBILE BAY PIPELINE

FLORIDA GAS REQUESTS APPROVAL TO ACQUIRE INTEREST IN MOBILE BAY PIPELINE
 HOUSTON, March 17 /PRNewswire/ -- Citrus Corp.'s Florida Gas Transmission Company (FGT) and Transco Energy Company's Transcontinental Gas Pipe Line Corporation (TGPL) announced today that they have filed an application with the Federal Energy Regulatory Commission (FERC) requesting authorization for FGT to acquire an interest in TGPL's Mobile Bay Pipeline and to expand the pipeline.
 The purchase of facilities and the expansion of the Mobile Bay Pipeline to approximately 830 million cubic feet per day (MMcf/d) would be contingent on the FERC's authorization of FGT's Phase III expansion project. FGT's purchase price for its interest in the Mobile Bay Pipeline would be based upon book value at the time of closing. The agreement with TGPL would result in FGT receiving capacity to transport approximately 300 MMcf/d of natural gas, upon completion of the expansion, from the Mobile Bay Area for its customers in the Phase III expansion. With natural gas reserves estimated at more than 10 trillion cubic feet, the Mobile Bay area contains some of the country's largest gas reservoirs.
 "We view this as a very significant development for our expansion project and for our customers in Florida," said William V. Allison, president of Florida Gas Transmission and Citrus Corp. "We've been working on this agreement since an earlier project had to be abandoned last October. It makes great sense to move Mobile Bay gas to our Florida markets."
 As previously announced, FGT has obtained firm service agreements to transport approximately 550 MMcf/d to serve 30 customers as part of the company's Phase III expansion. The expansion, which is expected to be in service in the 1994-1995 time frame, would increase the pipeline's capacity to more than 1.4 billion cubic feet per day.
 FGT filed an application with the FERC in November 1991 for approval to construct the Phase III expansion project. The company is continuing the final design work to deliver 550 MMcf/d of natural gas to multiple delivery points throughout the state. FGT will provide final design and environmental information when it amends its FERC application on April 15.
 Florida Gas Transmission is a wholly owned subsidiary of Citrus Corp., which is jointly owned by an Enron Corp. subsidiary and Sonat Inc. Florida Gas Transmission is a 4,464-mile pipeline extending from South Texas to south of Miami.
 Transco Energy Company (NYSE: E) transports natural gas through its interstate pipeline systems to markets in the eastern and midwestern United States, arranges for the transportation and sale of natural gas throughout the U.S., and is active in the independent power generation industry and natural gas vehicle fueling services. Transco also maintains modest positions in other energy-related businesses. TGPL owns and operates a 10,000-mile pipeline system that extends from the Gulf of Mexico to New York City.
 -0- 3/17/92
 /CONTACT: Diane Bazelides, media relations, 713-853-6285, or E. P. Segner, senior vice president-investor, public & govt. relations, 713-853-5299, both of Enron Corp./
 (E) CO: Florida Gas Transmission Co.; Citrus Corp. ST: Florida, Texas IN: OIL SU: TNM


SH -- NY030 -- 8725 03/17/92 10:55 EST
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Publication:PR Newswire
Date:Mar 17, 1992
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