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TENNECO ANNOUNCES $632 MILLION SALE OF NATURAL GAS LIQUIDS ASSETS

 TENNECO ANNOUNCES $632 MILLION SALE OF NATURAL GAS LIQUIDS ASSETS
 HOUSTON, Nov. 25 /PRNewswire/ -- Tenneco Inc. (NYSE: TGT) announced that it has completed a major component of its $2 billion action plan with the signing today of a definitive agreement to sell its natural gas liquids business to Enron Corp. for $632 million. The proposed sale, which includes an MTBE plant under construction in La Porte, Texas, is scheduled to close on Dec. 31, 1991.
 "This sale constitutes the key element of the company's non-core business divestiture program and is a cornerstone of the overall action plan," said Michael H. Walsh, Tenneco president. "We're pleased we've reached this agreement and we're encouraged with our progress on the additional asset sales and the other measures of our restructuring effort.
 "A comprehensive, orderly program for the sale of these properties has been conducted over the past two months. The breadth and level of interest in these properties clearly confirmed the values we placed on them."
 In addition to the MTBE plant, which will produce a gasoline blending component (methyl tertiary butyl ether), the natural gas liquids operations include a methanol facility, a butane isomerization plant, nine million barrels of underground storage, a 250-mile liquids pipeline, and varying ownership interests in three gas processing plants and a large natural gas fractionator. Most of the operations are located in La Porte and Pasadena, Texas, near the Houston Ship Channel.
 The definitive sales agreement provides that Enron will pay $523 million in cash at the closing and will be responsible for costs associated with completion of the MTBE plant subsequent to closing of an estimated $102 million and for the assumption of $7 million of debt. The transaction is subject to receipt of necessary government approvals.
 As part of its $2 billion action plan, Tenneco has now signed definitive agreements for the sale of non-core assets of $686 million, all of which are scheduled to close by year end. This total exceeds the target of $500 million in non-core asset sales to be completed this year. Additional selected non-core asset sales, together with a proposed equity issue in the form of PERCS will complete the action plan announced in September.
 A registration statement relating to the PERCS has been filed with the SEC but has not yet become effective. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
 The natural gas liquids operations are conducted by subsidiaries of Tenneco Gas, a unit of Tenneco.
 Tenneco Inc., is a Houston-based diversified company with major business interests in natural gas pipelines, farm and construction equipment, shipbuilding, automotive parts, packaging, chemicals and minerals.
 -0- 11/25/91
 /CONTACT: Christine LeLaurin of Tenneco, 713-757-2761/
 (TGT) CO: Tenneco Inc. ST: Texas IN: OIL SU:


TS -- NY009 -- 6681 11/25/91 08:44 EST
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Publication:PR Newswire
Date:Nov 25, 1991
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