Mike/Jeff:
 
Basic commercial items discussed during meetings from last week.  We will be following up with the different groups to try and push forward.  I will also be getting with the different business heads to further gauge their feedback (interests/concerns).  I'd like to set a time to speak with the both of you regarding feedback on the way forward (MOU development).  Also progress with steel, softs (trade finance) and non ferrous.
 
Thanks for your support last week.
 
Joe

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Lead item: W. Coast regas terminal co-operation. NIC's ability to introduce large Japan EPCO / Gas Co to

"pool" LNG. Instant credibility to Enron with sellers if we together go in and bid for 2 X 2mm tons, 2 X 3mm tons etc. Ability to secure more flexible destination rights.
share equity risk
Technology support, expertise

Potential offtake commitment from Egyptian SEGas Project (2 bcm offtake). Primary interest to take to Bahamas regas facility
Some discussion on merchant shipping
Some discussion on physical supply to Japan (e.g. boiler conversion)

 

Crude & Products:

 

Equador LPG facility. Offshore to onshore storage re-siting.  Interest in financing and supply
NIC imports approx 300,000 t pa low sulphur Pet coke. Currently sourced by NIC from F.O.B. Long Beach. Enron to investigate alternative supply
Discussion on available LPG storage, customers and distribution in Japan.  NIC indicated ability to help Enron break into this market
Enron indicate ability to utilize W. Coast Jet storage (leased by Enron via Kinder Morgan / GATX). Interest in sourcing transportation grade fuels (jet kero, unleaded gas / Mogas) + gasoil & heating oil out of Japan in to premium US W. Coast market. Tolling / processing through Japanese refiners (Okinawa 20,000 b/d).
Interest in restructuring of Indonesian KMI project and physical offtake of methanol
NIC indicated ability to help facilitate Enron's interest in expanding Enron's physical and financial Naphtha.  Also interest in further developing products along ethylene - polypropylene and polyethylene chain 
BC4 Frade physical crude volumes (Brazil) to commence from 2004/2005.  Requirements for financing and offtake
NIC in expanding and pushing market for JCC products
Additional broad discussion on in-country capabilities including storage and customer distribution

 


Coal


LAX Coal Terminal owned by Jp utilities interested in moving more product to Japan from PRB.  Mitsubishi deliveries have been curtailed due to mine problems.  Expensive supply, but utilities see other benefits.  Could be means for Enron to deliver to utes.

Trial coal shipment (Nov 01 - Mar 02) 
If successful to Jp utilities, then to look at longer term contract

Enron interest in importing Indonesian low sulfur coal for US Northeast utes utilizing NIC's contacts