USA: BP plans to build U.S. LNG import terminals.
Reuters English News Service, 04/03/01

USA: CMS gets okay to expand Louisiana LNG terminal 40 pct.
Reuters English News Service, 04/03/01

USA: Enron unit, J.C. Penney sign $600 mln energy deal.
Reuters English News Service, 04/03/01

Enron Wins $600 Million J.C. Penney Energy Contract (Update2)
Bloomberg, 04/03/01

Enron, JC Penney in energy management deal; to buy 600 mln usd of commodities
AFX News, 04/03/01

Endesa, Enersis To Test Powerline Technology In Chile
Dow Jones International News, 04/03/01

Williams 1st-Qtr Profit to Beat Forecast on Trading (Update3)
Bloomberg, 04/03/01

Ariba's Failed Agile Purchase the Latest to Founder on Economy
Bloomberg, 04/03/01



USA: BP plans to build U.S. LNG import terminals.

04/03/2001
Reuters English News Service
(C) Reuters Limited 2001.

HOUSTON, April 3 (Reuters) - Oil giant BP Amoco Plc said on Tuesday it has 
tentative plans to build up to three new import terminals for liquefied 
natural gas (LNG) to help meet growing demand for natural gas in the United 
States. 
"We are looking at probably two or three opportunitiesto bring LNG into both 
the East Coast and potentially the West Coast as well," Tony Fountain, 
president of BP North America Gas & Power told reporters at a Ziff Energy 
conference in Houston.
"The driver for us in LNG is the tremendous market opportunity in North 
America, but we've obviously got great (natural gas) reserves and resources 
around the world," he said. 
Fountain said Mexico was among potential sites that BP was considering for an 
LNG terminal to meet demand for natural gas on the U.S. West Coast. He 
declined to give specific details on locations or timing, saying only that 
BP's plans envisaged construction of the new terminals during the current 
decade. 
BP is already involved in LNG production in Trinidad and Fountain said the 
company is currently exploring the possibility of producing LNG in Egypt and 
other locations around the world. 
Strong U.S. natural gas prices have led to renewed interest in LNG, with 
companies such as El Paso Corp. and Enron Corp. drawing up plans for new 
import terminals. 
Until recently the high cost of cooling and transporting natural gas in 
liquid form made investment in new import facilities uneconomical. 
The U.S. currently has four LNG import terminals that were built more than 20 
years ago. Two of them are currently receiving LNG cargoes and the other two 
are scheduled to resume operations in the next one to three years.

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


USA: CMS gets okay to expand Louisiana LNG terminal 40 pct.
By Spencer Swartz

04/03/2001
Reuters English News Service
(C) Reuters Limited 2001.

SAN FRANCISCO, April 3 (Reuters) - CMS Energy Corp. said Tuesday it has 
received final approval from the federal government to boost its liquefied 
natural gas (LNG) terminal capacity in Louisiana, already the largest in the 
U.S., by over 40 percent. 
Michigan-based CMS's decision to add 300 million cubic feet a day (mmcfd) of 
gas capacity at its Lake Charles terminal, the largest of two U.S. LNG 
terminals in operation, comes amid record high gas prices as traditional 
sources of gas from places like Texas and the Gulf of Mexico cannot keep pace 
with rising demand.
The decision by the Federal Energy Regulatory Commission (FERC) will allow 
the company's Trunkline LNG unit to begin immediately making modifications at 
its LNG terminal and to have the new capacity on line by June of this year, 
the company said in a statement. 
With FERC approval, CMS will expand the Lake Charles terminal from its 
current send out capacity of 700 mmcfd to a peak capacity of 1 billion cubic 
feet a day (bcfd), CMS said. 
CMS also said it was evaluating whether to add another 200 to 300 mmcfd of 
send out capacity at the LNG terminal, a company spokesman said. 
The modifications to the CMS Trunkline LNG facility, which will not impact 
current terminal operations, will eliminate bottlenecks in the regasification 
process, the company said. 
In 2000, there were 55 LNG tanker ships unloaded at the Lake Charles 
terminal, and CMS said it expects the level LNG shipments to be higher in 
2001. 
NEW WEST COAST MARKET? 
High prices for traditional gas supplies have lent further momentum to the 
prospects for increased use of LNG, traditionally just about one percent of 
overall U.S. gas use due largely to high transportation and liquefaction 
costs. 
LNG's costly liquefaction process involves super-cooling and injecting gas 
into spherical high-pressure tanks for onshore storage or shipment on board 
special LNG carriers. 
Some analysts have estimated LNG could rise to around five percent of overall 
gas use in the U.S. in the coming years, as well as attracting Asia-Pacific 
LNG to the energy-starved West Coast. 
U.S imports of LNG, mainly to New England, the largest consumer of gas, 
usually have usually come from Algeria, Trinidad, Nigeria and Qatar in recent 
years. 
But as high gas prices on the U.S West Coast face vast gas resources in the 
Asia Pacific region, the paradigm appears to be shifting. 
In late March, Chevron Corp. said it was studying plans that could allow it 
to start shipping LNG to the U.S. West Coast by 2005 if the project is 
economically viable. Chevron said it would look at supplying the LNG from its 
gas holdings in Australia. 
El Paso Corp. also said in March it had tentatively agreed to begin 
purchasing LNG in 2005 in hopes of shipping it to California or Mexico. 
Under this plan, LNG would be purchased from a Phillips Petroleum Co. plant 
near Darwin, Australia. 
TERMINAL INTEREST 
In January, energy giant Enron Corp. said it was looking into developing a 
new LNG import terminal in the Bahamas, connected by a 90-mile (145 km) 
pipeline to Florida. 
This plan could begin commercial service by the end of 2004 if all regulatory 
permits are approved. 
Cabot LNG, a unit of Belgian-based energy services company Tractebel, 
operates the other active U.S. LNG terminal at Everett, Mass., near Boston. 
The company is in the process of more than doubling its vaporization capacity 
from 435 mmcfd to more than 1 bcf by the end of this year. 
The two other U.S. LNG import terminals, in Cove Point, Md., and Elba Island, 
Ga., idled years ago for lack of demand, are expected to reopen in one to 
three years, a move that would put all four of the country's LNG terminals 
back to work for the first time since 1982.

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


USA: Enron unit, J.C. Penney sign $600 mln energy deal.

04/03/2001
Reuters English News Service
(C) Reuters Limited 2001.

SAN FRANCISCO, April 3 (Reuters) - A unit of energy giant Enron Corp. and 
J.C. Penney , one of the nation's largest retailers, on Tuesday said they 
have signed a $600 million energy services deal in a bid to lower the 
retailer's energy costs and firm up its profit margins. 
Under the agreement, Enron Energy Services (EES) will manage and purchase the 
supply of energy-related commodities, like electricity and natural gas, at 
more than 1,250 J.C. Penney locations in all 50 U.S. states. EES will also 
replace or update energy equipment to reduce consumption and create 
additional savings for J.C. Penney, Enron said in a statement.
The deal comes a day after EES signed a long-term energy management agreement 
for all of upscale retailer Saks Inc.'s facilities. 
Under that agreement, EES will supply all of Saks' store locations, which 
total over 300, its distribution facilities, and administrative offices with 
electricity and natural gas. 
Although no time frame was given for either the J.C. Penney or Saks deal, 
Enron has said that contracts typically run between five and 10 years. 
To date, EES manages energy at more than 28,500 customer sites. 
A host of companies have recently farmed out their energy management to Enron
, including drug maker Eli Lilli and Co. , the North American arm of British 
glassmaker Pilkington Plc , one of the world's largest glass and plastics 
makers Owens-Illinois , and cereal and sports beverages maker Quaker Oats Co. 
.

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


Enron Wins $600 Million J.C. Penney Energy Contract (Update2)
2001-04-03 16:05 (New York)

Enron Wins $600 Million J.C. Penney Energy Contract (Update2)

     (Updates with closing share prices.)

     Houston, April 3 (Bloomberg) -- Enron Corp., a natural-gas
and electricity seller, won a $600 million contract to sell energy
to J.C. Penney Co., the No. 2 U.S. department-store chain.
     The ``long-term'' contract covers 1,075 J.C. Penney
stores and 175 offices in 50 U.S. states, J.C. Penney spokeswoman
Stephanie Brown said. The length of the contract wasn't disclosed,
though energy-service contracts often run five to 10 years, Brown
said.
     Enron will supply electricity and also plans to cut the
retailer's energy costs and consumption as part of the service
contract, an Enron statement said.
     J.C. Penney, based in Plano, Texas, also owns the Eckerd
drugstore chain. It has been shutting stores and cutting costs as
well as making changes to improve sales.
     Houston-based Enron, the world's biggest energy trader,
formed Enron Energy Services in 1996. The unit won $16.1 billion
in contracts last year and now supplies energy to 28,500 customer
sites.
     Shares of Enron fell $2.51 to $54.06. They've fallen
35 percent this year. Shares of J.C. Penney fell 40 cents to
$15.55. They've risen 43 percent this year.

--Jim Polson in New York, (609) 279-4106 or jpolson@bloomberg.net,
through the Princeton newsroom, 609) 279-4000/pjm


Enron, JC Penney in energy management deal; to buy 600 mln usd of commodities

04/03/2001
AFX News
(c) 2001 by AFP-Extel News Ltd

HOUSTON (AFX) - Enron Corp's Enron Energy Services and JC Penney Co Inc said 
they entered a long-term energy management agreement covering the purchase of 
over 600 mln usd in energy-related commodities. 
In a joint-statement, the companies said that, through this agreement, Enron 
will manage the supply of electricity at more than 1,250 JC Penney locations 
in 50 states, as well as replace or update energy equipment to reduce 
consumption and create additional savings for JC Penney.
David Delainey, chairman and chief executive of Enron Energy Services said: 
"By outsourcing energy management to Enron, JCPenney is protected from 
volatile energy prices while receiving the benefits of energy equipment 
upgrades in its retail stores." 
lj For more information and to contact AFX: www.afxnews.com and 
www.afxpress.com

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


Endesa, Enersis To Test Powerline Technology In Chile

04/03/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

SANTIAGO -(Dow Jones)- Chile's Enersis SA (ENI) will begin in Santiago, in 
the third quarter, a large-scale test of powerline technology which would 
transmit telecommunications signals across electricity lines, local paper El 
Diario reported Tuesday. 
Speaking at a shareholder's meeting, Enersis executive Rafael Miranda said 
Spain's Endesa SA (ELE), which controls Enersis through a 65% stake, will 
launch a parallel test in Palmas Mallorca.
However, Miranda added, all other telecom investments that aren't yet 
generating revenues for the company are presently, temporarily paralyzed. 
Enersis recently turned down an option to purchase 35% of the Chilean mobile 
telecom unit owned by Spain's Endesa, called Smartcom PCS. In turn, Spain's 
Endesa has said it intends to sell off its roughly EUR5.6 billion stake in 
European telecoms holding company Auna. 
Separately, Miranda said Enersis' investment plans for the electricity sector 
are unchanged. Through 2005, the company will focus investment in Brazil, 
where it plans to add 3,300 Megawatts of installed capacity and 1.1 million 
new clients. Enersis will invest in Brazil about EUR2.7 billion of the total 
EUR4.2 billion scheduled for the region. 
Miranda added that Enersis will evaluate the possible purchase of Brazil's 
Electrogen, which is now controlled by U.S. company Enron. 
Enersis's chairman Alfredo Llorente said the company will seriously study the 
possibility of building a transmission line between Argentina and Chile. 
Electricity supply in Chile is expected to be tight throughout 2002 and into 
2003. 
Company Web site is http://www.enersis.cl 
-Andrea Welsh, Dow Jones Newswires; 562-460-8547; chile@dowjones.com

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


Williams 1st-Qtr Profit to Beat Forecast on Trading (Update3)
2001-04-03 16:20 (New York)

Williams 1st-Qtr Profit to Beat Forecast on Trading (Update3)

     (Updates with closing share price. For more on the California
electricity crisis, see {EXTRA <GO>}.)

     Tulsa, Oklahoma, April 3 (Bloomberg) -- Williams Cos., a
natural-gas pipeline company that's become one of the largest U.S.
energy traders, said first-quarter per-share profit will be above
previous estimates by 15 cents because of gains from energy
trading and gas exploration and production.
     Williams expects profit from continuing operations of
65 cents to 75 cents a share in the quarter, the company said in a
statement. It previously had forecast profit around 50 cents to
60 cents. The company also said it expects to earn $1.75 to $1.95
this year.
     The average gas price last quarter on the New York Mercantile
Exchange more than doubled from a year ago, and gas in California,
hit by a 10-month energy crisis, rose fivefold. Williams's
earnings in the fourth quarter almost quadrupled as trading profit
rose amid wide electricity- and gas-price swings in California and
elsewhere.
     ``If you had to look at just one driver, it's definitely that
marketing and trading activity,'' said Neil Dingman, an associate
analyst at Dain Rauscher Wessels. Though power-trading profit is
from around the country, the crisis in California has helped, he
said.
     The average power price in California rose ninefold last
quarter from a year ago, and prices ranged from $148.33 a megawatt-
hour to $516.67 a megawatt-hour, according to Bloomberg Energy
Service statistics. A megawatt-hour is enough to light 1,000 U.S.
homes for an hour.
     Shares of Tulsa, Oklahoma-based Williams fell $3.40 to
$40.15. They've fallen 8 percent in the past year.
     In the quarter, Williams was expected to earn 38 cents a
share, the average estimate of analysts polled by First
Call/Thomson Financial. The average analyst forecast for 2001 was
$1.44.

                              Spinoff

     With the spinoff of Williams Communications, the company will
report that unit's results as discontinued operations.
     Other energy traders have said recently they made more money
than expected last quarter because of gains in business in the
U.S. West.
     Houston-based Dynegy Inc. said yesterday that first-quarter
profit rose to about 40 cents a share from 26 cents a year
earlier. The company was expected to earn 31 cents, the average
estimate of analysts polled by First Call.
     Others with higher-than-expected profit include San Jose,
California-based Calpine Corp., an electricity generator and power-
plant developer; Spokane, Washington-based Avista Corp., owner of
utilities in the U.S. Northwest; and Atlanta-based Mirant Corp.,
the energy-trading arm of Southern Co.
     In January, Houston-based Enron Corp., the biggest energy
trader, raised its 2001 profit forecast, partly because of trading
in North America.

--Mark Johnson in Princeton, (609) 279-4017 or
mjohnson7@bloomberg.net, and Jim Kennett in Houston, through the
Princeton newsroom/pjm


Ariba's Failed Agile Purchase the Latest to Founder on Economy
2001-04-03 16:13 (New York)

Ariba's Failed Agile Purchase the Latest to Founder on Economy

     Mountain View, California, April 3 (Bloomberg) -- Before its
stock collapsed, Ariba Inc. agreed to pay $2.3 billion of shares
for Agile Software Corp. Three months later, the offer was worth
$117 million. Yesterday, the companies canceled their plan.
     The failed agreement between the two software companies was
the latest acquisition to founder amid the stock market rout.
The four largest transactions that collapsed this year had a
combined announced value of almost $40 billion.
     ``The issue is the enormous uncertainty about the economic
climate,'' Robert Cotter, U.S. head of Deutsche Bank AG's
investment banking unit. ``This climate of volatility makes it
difficult to close deals.''
     Abandoned purchases including FPL Group Inc.'s $15.8 billion
acquisition of Entergy Corp. mean the investment bankers advising
the companies may receive partial payment of fees that would have
run into the tens of millions of dollars. In some cases, the
bankers may only get expenses.
     Morgan Stanley Dean Witter & Co., Salomon Smith Barney,
Credit Suisse First Boston, Lehman Brothers Holdings Inc., J.P.
Morgan Chase & Co., Merrill Lynch & Co. and Thomas Weisel Partners
are among advisers coming up short because of recent failed
transactions.

                           Three in a Day

     Last month, three significant mergers fell apart in a single
day. In each case, executives blamed slumping shares or commodity
pricing issues.
     Enron Corp. Chief Executive Jeffrey Skilling said on March 23
that the largest energy trader's effort to sell Portland General
Electric Co. to Sierra Pacific Resources for $3.1 billion had only
a 5 percent chance of being completed.
     Skilling cited reasons related to turmoil in the California
electricity market, whose problems have driven the state's two
largest power companies close to bankruptcy. The Portland General
sale agreement was announced in November 1999, about a year before
California power problems became acute.
     On the same day, American Skiing Co., the largest U.S. ski
resorts owner and operator, called off plans, announced in
December, to buy hotel manager MeriStar Hotels & Resorts Inc. for
$230 million in stock and debt.
     The two companies cited economic and market conditions that
made it difficult for them to complete the transaction. American
Skiing shares had fallen 43 percent since the proposed takeover
was announced.

                            Software Slump

     The third purchase to fall apart on March 23 was Proxim
Inc.'s proposed takeover of Netopia Inc., an Internet-service
equipment provider, for $233 million.
     The two companies cited current market conditions in
announcing they would take separate paths. Shares of Proxim, a
maker of wireless computer networking equipment, had fallen 70
percent since the transaction was first announced.
     Endesa SA and Iberdrola SA, Spain's two biggest utilities, on
March 5 dropped their planned 14 billion-euro ($13 billion)
merger, one that would have created the world's largest utility by
customers after the Spanish government imposed conditions the
companies deemed unacceptable.
     Fallout from California helped break apart another utility
purchase on March 6, when Consolidated Edison sued Northeast
Utilities, New England's largest utility, to cancel its October
1999 agreement to buy Northeast for $7.7 billion in cash, stock
and assumed debt.

                          Power Contracts

     The suit cited the risk of fixed-price contracts for power
sales in 2002 and 2003. Northeast has countersued for $1 billion.
     Fixed retail prices in California and unregulated wholesale
prices have burdened PG&E Corp. and Edison International with $13
billion in debt.
     Northeast said Edison wanted to renegotiate the price because
of changes in value.
     In addition to market strains, proposed mergers have come
apart this year for reasons that can crop up when two different
organizations plan to fuse.
     In the largest abandoned transaction this year, FPL yesterday
canceled its purchase of Entergy after the two utilities' leaders
fought for dominance of the combined company, and FPL said Entergy
gave conflicting earnings forecasts.
     Entergy Chief Executive Wayne Leonard said James Broadhead,
FPL's chairman and chief executive, planned to renege on an
agreement to make Leonard the CEO of the new company, which would
have had more utility customers than any U.S. rival.

                        Strategies in Doubt

     Wide swings in power prices such as those experienced in
California also placed the companies' risk management strategies
in doubt, Entergy said.
     The merger of FPL, owner of Florida Power & Light, and
Entergy, owner of utilities in Louisiana, Texas, Mississippi and
Arkansas, would have created a utility company with 6.9 million
customers. The combined company would have had annual revenue of
more than $17 billion.
     By mutual agreement, the two companies agreed not to seek
$215 million in termination fees, provided neither agrees to a
purchase or takeover with a third company for nine months.
     On March 29, Tyson Foods Inc., the world's largest poultry
producer, broke off its $4.7 billion purchase of meatpacker IBP
Inc., after IBP corrected some financial statements and reported
fraud at an appetizer unit.
     IBP, the largest U.S. beef producer, filed suit the next day,
asking a Delaware judge to order Tyson to complete the
acquisition.

--George Stein in New York (212) 893-3934, (917) 545-9850,
ghstein@bloomberg.net/jk