If we worked out a price structure similar to the last cargo, we could 
eliminate the price risk by paying the following for the LPG:

1400 MT at a Fixed Price (represents amount borrowed that went to April sales)
2900 MT based on May Mont Belvieu plus Premium 1
2800 MT based on June Mont Belvieu plus Premium 2 and
2900 MT based on July Mont Belvieu plus Premium 3

The Fixed Price for 1400 MT and the Premiums 1,2, and 3 are under discussion 
with Suzanne. This structure matches the cost of product with ProCaribe's 
sales revenue.

Question: How does ProCaribe get paid for the 15 days of product that goes 
with the Progasco sale?

Paul





Greg Curran
05/04/2001 02:45 PM
Sent by: Greg Curran
To: Miguel Maltes/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Javier Chavarria/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Greg 
Curran/CA/Enron@Enron, Federico 
Haeussler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Paul Y'Barbo/NA/Enron@Enron, 
Suzanne B Clapp/HOU/ECT@ECT, Mariella 
Mahan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT 

Subject: Re: Next Cargo  

Please explain how we will manage the price risk on this.  Remeber that we 
have to give 15 days worth of product with the sale of  Progas.  What are the 
payment terms?  How are you with cash?



Miguel Maltes@ENRON_DEVELOPMENT
05/04/2001 02:12 PM
To: Javier Chavarria/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Greg Curran/CA/Enron@Enron, Federico 
Haeussler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Paul Y'Barbo/NA/Enron@Enron, 
Suzanne B Clapp/HOU/ECT@ECT 
Subject: Next Cargo

Our next cargo has a loading window in PDVSA on May 18, 2001, with an ETA in 
ProCaribe on May 19 - 21, 2001.  The cargo is for 10,000 Mts. (5.2MM gallons) 
at MB + 7 three days around bill of lading.  This means that the invoice will 
be the average price of MB on the loading day, the day before and the day 
after, excluding weekends and holidays, plus 7 cents a gallon.

The following are the monthly sales average per customer:

* Progasco  1,100,000 gallons
* San Juan Gas     210,000 gallons
* Centro Gas                  140,000 gallons

Total borrowing return to EcoEl,ctrica 3,200 Mts or 1,667,200 gallons on 
5/19/01.
 
After returning all the borrowing (5/19/01) we have a balance of 3,480,233 
gallons.  The following are the estimated sales and heater consumption per 
month:

* May (12 days)    563,520 gallons (from May 20th through May 31st)
* June (30 days)  1,408,800 gallons 
* July  (31 days)  1,455,760 gallons

Inventory balance as of: 7/31/01 (52,153 gallons).

Next cargo arrival delivery window July 20 - 31, 2001.

Saludos