Nobody in my shop has seen any of this.  I'm not sure what Rick is doing with 
Skilling, and I am not in a position to respond to the outcome of their 
meeting.  Eric Gonzales needs this ship, or at least play the card with 
either British Gas or BP/Amoco for fuel to supply the spanish plant.  Eric is 
frustrated as well, and nobody has done any economic or commercial study on 
the exmar option.  I'll phone Bergsieker and see what I can find out.  
Thanks.   

Jeff
---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 08/28/2000 
01:20 PM ---------------------------
   Merritt Thomas                08/28/2000 12:24 PM

To: Jeffrey A Shankman/HOU/ECT@ECT
cc: Joe Gold/LON/ECT@ECT, Brad Hitch/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, 
Eric Gonzales/LON/ECT@ECT 
Subject: 

Jeff,

Two quick points:

1.  We wanted to give you a heads-up in case you weren't aware - Rick 
Bergsieker is planning to meet with Skilling sometime this week (believe 
post-Wednesday) to talk about the exercise of the first Exmar option.

This option expires on September 8th, an extension from the original expiry 
of 31 August.
Option 2 (for a third vessel - to expire 30 November) will expire along with 
option 1, if option 1 is not exercised.
Option 1 is US$1,000/day more than the original vessel.  Option 2 is 
US$1,500/day more than the original vessel.  (The original vessel is 
US$51,850/day fixed + US$10,790 O&M escalating)
As discussed earlier, Bergsieker's group is offering the use of the Hoegh 
Galleon (Mystic Lady) to Kogas as an incentive for them to sub-charter the 
second Exmar vessel from us.
While we are not aware of the terms of the sub-charter agreement, we do 
perceive the shipping constraint in the industry to be most acute in the next 
3 years, and thus not the best use of the Hoegh Galleon.

We are under the impression that Bergsieker also plans to use this 
opportunity to discuss "LNG Strategy and Oversight", specifically his group's 
future role in it.  Please see the attached presentation to this end.



2.  We had a planning meeting with Eric today and are pushing ahead on an 
initial business plan to be delivered at the end of the week.  We expect to 
cover the following: 

Opportunities for Enron in this market
Value - where we can extract it
Assets - how best to utilise them
Resource planning
Goals

Please let us know if there is anything further you would like included at 
this point, or if we can answer any questions regarding any of the above.

Thanks,
Merritt & Brad

+44-207-783-7063