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TRANSCO TO SELL TEVCO UNIT FOR $160 MILLION

 HOUSTON, July 5 /PRNewswire/ -- Transco Energy Company (NYSE: E) announced today that it has entered into a definitive agreement to sell its Transco Energy Ventures Company (TEVCO) subsidiary to National Power America, Inc., a subsidiary of National Power PLC, for $160 million, subject to certain adjustments. Transco expects to record a gain on the sale of approximately $50 million pre-tax ($32 million after-tax, or $0.81 per share) at the closing later this year. The closing of the sale is subject to certain conditions.
 TEVCO develops, constructs, owns and operates cogeneration and independent power plants; provides natural gas vehicle fueling services; and provides energy consulting services.
 Transco Chairman, President and CEO John P. DesBarres said, "National Power's recognition of TEVCO's successful management team and significant presence in power generation, along with National Power's desire to expand its role in power generation internationally, offered both National Power and Transco unique opportunities to pursue their respective strategic objectives. We remain committed to deleveraging our balance sheet, and the sale of TEVCO is an important step in achieving this objective."
 TEVCO President Robert M. Chiste said, "We welcome the opportunity to expand TEVCO's role in the international power generation market. TEVCO's management and employee team will continue our operating and development activities with our current partners, and we hope to build on those relationships in our new association with National Power. Also, we look forward to participating with Transco in future integrated projects that would benefit from their natural gas pipeline expertise."
 Transco Energy Company 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 maintains modest positions in other energy-related businesses.
 -0- 7/5/93
 /CONTACT: Katherine K. Putnam, 713-439-2455, or (investors)


R. Dean Ayers, 713-439-2593, both of Transco Energy Company/
 (E)


CO: Transco Energy Company ST: Texas IN: OIL SU: TNM

TS -- NY002 -- 8425 07/05/93 10:09 EDT
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Publication:PR Newswire
Date:Jul 5, 1993
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