As promised, a transcript of the CNBC story follows.  We don't have the tape 
yet, but it is my understanding that it came off well on video.

John
---------------------- Forwarded by John Ambler/ENRON_DEVELOPMENT on 
07/17/2000 10:16 AM ---------------------------


Jimmy Mogal
07/17/2000 09:41 AM
To: John Ambler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Johan 
Zaayman/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:  

Subject: Transcript of CNBC interview/Metgas

In case you want to forward to Mark......
---------------------- Forwarded by Jimmy Mogal/ENRON_DEVELOPMENT on 
17/07/2000 08:09 PM ---------------------------


Jimmy Mogal
17/07/2000 07:53 PM
To: INDIA TEAM - ENRON
cc:  

Subject: Transcript of CNBC interview/Metgas

For those of us who missed the program, foll is a gist: 



Channel??????????????CNBC, Asia
Programme????????India  Market Wrap
Subject???????????????LNG  industry in India
Duration?????????????5  minutes
Date??????????????????  14/ 07/ 2000
Journalist?????????  Ms. Jaya Mahajan 
Visuals: aerial view of Dabhol, shots of  terminal under construction 
?
Introduction: Natural gas is emerging as an  important alternative fuel for 
power and fertiliser plants in India. The Indian  government is encouraging 
import of natural gas to cope with?growing  depletion of India's natural gas 
reserves.
13 LNG terminals are being planned in India?- an  estimated investment of Rs. 
300 billion. But, the demand for LNG depends on  gas-based power projects, 
growth of which has been sluggish.
?
The future of LNG in India
13 terminals are currently being planned that can transport 40  million 
tonnes of LNG per year. Half of these projects are in Maharashtra and  
Gujarat where five terminals will come up in the next ten years.
Petronet - Dahej
Shell????? - Hazira
Indigas? - Mumbai
Enron?? - Dabhol
British Gas - Pipavav
Of all proposed LNG terminals, it is only at Dabhol that  construction of?the 
2 million tonne LNG terminal has started. ?The  first ship is expected in 
November, 2001 and gas deliveries?to customers in  Mumbai are expected?to 
start?by mid-2002. Enron  will enjoy the first mover advantage, where 
construction of LNG terminal is half  complete.
Enron's?main competitor will be Indigas promoted by TEC,  Total and Gail 
which is expected to come up by 2004. The basic engineering  design is ready 
and contracts for storage tanks, jetty and terminal will soon be  decided.
?
C de Frassinette, MD, Indigas:
Infrastructure is required for LNG terminals - we will benefit  as?Gail's 
infrastructure is in place.?In the next ten years, when  phase II is?on line, 
we will be able to market?our fuel (about 6  million tonnes) thanks to the 
development of the natural gas market and  depletion of Bombay High. 
?
K. Wade Cline, COO Enron India
Due to our contractual access to the existing LNG facility at  Dabhol, we 
will be able to share in this and therefore don't have to incur extra  costs 
on LNG tanks, regas facility and fuel landing jetty.
All projects need a pipeline to be built from?location to  customers - our is 
only 190 km North of Dabhol to Mumbai?and will service  our customers in the 
Mumbai route. We don't see any disadvantage.
?
Voice-over:
The success of these projects depends on the cost of  construction?and price 
of gas. Only Petronet (a consortium of Indian oil  companies) which expects 
to begin supplying gas by 2003 has fixed a price -  $4.5, per billion tonne 
unit. This is 20% cheaper than naphtha, the other major  fuel currently being 
used. The price of LNG is?determined by customs duty  which, in India, is at 
over 20%?- the highest anywhere in the  world.
?
K. Wade Cline
We'd like the government to lower duty on LNG?and make it  closer to, for 
example, rates on other infrastructure projects like power  plants. ?? 
?
C de Frassinette
In Japan, LNG is not taxed at all. In Korea, there is just 1%  customs duty. 
Japan is the largest importer of LNG, accounting for?60%  of? global LNG 
market. We need to move in this direction.
?
Voice-over:
Even if LNG were affordable, setting imported terminals is an  expensive 
exercise. Estimated cost of the?5 million tonne Petronet terminal  is Rs. 
22.5 billion. The project cost of Indigas is Rs.25 billion.
Not all terminals will finally come up, but for those that do,  there is 
enough demand for this fuel of the future that is cleaner and greener  than 
others. 
?
?