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TEXACO LICENSES GASIFICATION TECHNOLOGY FOR CHEMICAL AND GAS PLANT IN SHANGHAI, CHINA

            TEXACO LICENSES GASIFICATION TECHNOLOGY FOR
             CHEMICAL AND GAS PLANT IN SHANGHAI, CHINA
    WHITE PLAINS, N.Y., March 31 /PRNewswire/ --  Texaco Inc.'s (NYSE: TX) Alternate Energy group today announced that its coal gasification technology has been selected for a new plant to be located in Shanghai, China.
    The Shanghai Coking and Chemical Plant (SCCP) will utilize the Texaco Gasification Process, under license from Texaco Development Corp., to produce town gas and chemicals from coal, China's most abundant domestic energy resource.  This gasification plant is scheduled to begin operation in 1994, and is expected to significantly improve air and water quality in the city.
    SCCP is the largest supplier of town gas to Shanghai City (town gas is used for both heating and cooking).  The current supply of town gas meets only half the total needs of the city, forcing residents to rely on direct coal burning for heating purposes.  By gasifying 1,100 tons per day of coal, SCCP will be able to increase its production of town gas by 1.7 million cubic meters per day.  By eliminating the need to turn coal for heat and cooking, the SCCP will improve air quality in the city.  In addition, the plant will produce 200,000 metric tons per year of methanol.
    "Because of its unique flexibility, the Texaco Gasification Process is helping China meet both its energy and chemical needs.  At the same time, this technology will significantly improve air and water quality in the region," said David C. Crikelair, vice president of Texaco Inc. and head of the Texaco's Alternate Energy and Resources Department. "This new licensing agreement further strengthens our long and productive relationship with the petrochemical industry in China, and demonstrates the reliability and attractiveness of the Texaco Gasification Process."
    The new gasifier at the SCCP will also improve water quality in Shanghai.  Currently, large volumes of waste water are discharged directly into the Huangpu River, a major water source for the city of Shanghai.  When the gasification plant becomes operational, this waste water will be mixed with the coal to produce a slurry for the gasifier. Additionally, a water treatment facility will be installed to clean any water before it is discharged into the river.
    The SCCP project is being developed in three phases, with the first two phases to produce town gas and chemicals, and the third to include electricity generation.  The Texaco Gasification Process license agreement announced today covers the project's first phase.
    Once completed, this plant will bring to seven the number of Texaco licensed gasification plants operating in China, producing fuel and chemical products for a variety of purposes.  The first Texaco gasification plant in China was licensed in 1978.  Since then, four gasification plants have been constructed to use heavy oil to produce ammonia and other chemicals.  In addition, two other coal gasification plants are under construction:  the Lunan Fertilizer Plant in Shandong Province (start-up: mid-1992) will produce ammonia for fertilizer production; and the Shougang Coal Gasification Plant in Beijing (start- up: 1994) will produce a fuel gas for industrial use.
    This license agreement has been approved by the Chinese government. Terms of the agreement are not disclosed.  Texaco Development Corporation is the patenting and licensing subsidiary of Texaco Inc.
    Texaco's Alternate Energy group is directing an initiative to commercialize and license a number of technologies, including the Texaco Gasification Process.  The Texaco Gasification Process is unique because of its ability to utilize different feedstocks -- including coal, heavy oil, petroleum coke, waste gas and other hydrocarbons -- to produce a clean-burning synthesis gas for use in the petroleum industry, chemical manufacturing and electric power generation.  Texaco has licensed its gasification technology to more than 100 plants around the world.
    -0-                    3/31/92
    /CONTACT:   Chris Gidez of Texaco, 914-253-6170/
    (TX) CO:  Texaco Inc. ST:  New York IN:  OIL SU: SM -- NY048 -- 3344 03/31/92 10:54 EST
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Date:Mar 31, 1992
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