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UNITED GAS AND ANR PIPELINE SIGN AGREEMENT FOR FLORIDA PIPELINE

 UNITED GAS AND ANR PIPELINE SIGN AGREEMENT FOR FLORIDA PIPELINE
 HOUSTON, Dec. 4 /PRNewswire/ -- United Gas Pipe Line Company and ANR Pipeline Company, a subsidiary of The Coastal Corp. (NYSE: CGP), today announced that they have agreed to enter into a joint venture to build the SunCoast Pipeline, a 560-mile line that will significantly expand natural gas transmission, sales and storage services to the state of Florida.
 The new pipeline will extend from United's existing pipeline system at its current terminus near Pensacola, Fla. into northern and central Florida. It will have an initial capacity of over 400 million cubic feet of natural gas per day, which can be expanded with compression to over one billion cubic feet a day.
 "SunCoast will give Florida customers access to virtually every major natural gas supply basin in both the United States and Canada, at a lower cost than other available or proposed alternatives," said C. William Pollock, chairman and chief executive officer of United. "United's 9,600-mile interstate system is connected, directly or indirectly, to two-thirds of all known domestic U.S. natural gas reserves. The proposed project will give consumers unique access to those reserves and combined with the ANR's system, access to Mid- continent and Canadian supply basins.
 Consistent with the project's goal of being compatible with environmental values, the participants have pledged to work closely with the appropriate public and private-sector environmental groups to minimize environmental consequences from new construction. Whenever possible, the new pipeline will use utility-transmission and other existing rights of way, which represent approximately 65 percent of the 560 miles of new pipeline to be constructed.
 "SunCoast will enhance competition in a key growth region of the country," said James R. Paul, Coastal president and chief executive officer. "It will give Florida utilities increased access to low- cost, readily available gas supplies. And it will give producers increased access to Florida's incremental markets.
 "We believe that competition is good for Florida natural gas customers," Paul said, "and that our project is consistent with state and federal policies that encourage a pro-competitive marketplace. Florida's growing economy, population and energy needs mean there is room for -- and need for -- more than one natural gas transmission line in the state's energy picture."
 "Today's announcement represents another example of mutually beneficial cooperation between United and ANR," said Pollock, referring to the recent agreement whereby ANR has agreed to buy an undivided interest in certain portions of United's system including Gateway Pipeline, which is currently under construction.
 Florida Power Corp., a major electric utility headquartered in St. Petersburg, Fla. and serving the central and northwest portions of the state, has signed letters of intent to purchase 300 million cubic feet per day of firm transportation service in the new pipeline. It also has an option to become an equity participant in the new venture. Interest in the project has also been expressed by several other Florida utility and gas users.
 ANR Pipeline Co. is a subsidiary of The Coastal Corp., a Houston- based energy holding company with consolidated assets of $9 billion and subsidiary operations in natural gas transmission and storage, refining and marketing, oil and gas exploration and production, coal, chemicals, trucking and independent power production.
 United Gas Pipe Line Co. owns and operates a 9,600-mile interstate natural gas transmission system strategically located in the Gulf Coast region of the United States. United currently serves 467 communities and is connected to 126 industrial facilities as well as 13 major power plants. United's pipeline system has 120 interconnects with other major pipelines that directly serve the Southeast, East Coast and Midwest.
 -0- 12/4/91
 /CONTACT: Beth West of United Gas Pipe Line, 713-229-5373; or Barbara Johnson of The Coastal Corporation, 713-877-3293/
 (CGP) CO: Florida Power Corp.; ANR Pipeline Co.; The Coastal Corp.; United
 Gas Pipe Line Co. ST: Texas, Florida IN: UTI OIL SU:


EH-SE -- LA027 -- 9435 12/04/91 18:43 EST
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Publication:PR Newswire
Date:Dec 4, 1991
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