NorAm Gas Transmission Completes Perryville Hub Enhancements

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Nov. 7, 1994

NorAm Gas Transmission (NGT), a subsidiary of NorAm Energy Corp., announced today that it has completed its 1994 enhancements to its Perryville Hub facilities.

These new enhancements, which went into service throughout the past week, provide the growing natural gas markets in the Northeast and Midwest with greater access to the extensive reserves from the Anadarko, Arkoma, East Texas/North Louisiana, Permian, San Juan and Hugoton Basins of the Mid-Continent.

The first phase of the enhancement enabled NGT to sell on a firm seasonal basis 200 million cubic feet per day (MMcfd) of pipeline capacity to customers at the Perryville Hub by installing compression at an existing interconnect. This capacity, which will be available seasonally from November 1 through March 31, has been sold out on a firm basis for this winter. However, there may be occasions when interruptible transportation capacity is available.

NGT also completed three additional pipeline connections at the Perryville Hub as part of Phase II of the enhancement. These new connections are with Columbia Gulf Transmission and Tennessee Gas Pipeline's 100 and 800 lines. This brings the total number of interstate pipelines which converge at the Perryville Hub to ten. Other interstate pipelines at the Hub include Mississippi River Transmission (a NorAm Energy subsidiary), ANR, Koch Gateway, Trunkline Gas Company, Texas Eastern Transmission and Texas Gas Transmission.

"These enhancements make the Perryville Hub one of the major natural gas market centers of North America where gas supplies from the six major producing basins of the Mid-Continent have access to attractive markets in the Northeast and Midwest via ten interstate pipelines," stated Sharon J. Eady, NGT's Vice President of Marketing and System Management.

A connection with El Paso Natural Gas on the west-end of NGT's system which was placed in service on November 3, 1994, provides Anadarko, Permian and San Juan supplies access to the Northeast and Midwest markets through a west-to-east crosshaul to the Perryville Hub.

"Dependent upon continued strong demand from producers, end-users and other markets," Eady continued, "we have two additional projects which can add another 150 MMcfd of pipeline capacity from the Anadarko, Permian and San Juan Basins to the Perryville Hub. We will be evaluating the demand for these projects over the next few months."

In addition, NGT announced that it will have firm storage capacity available on or about April 1, 1995. The exact amount of available capacity has not yet been determined, but NGT is notifying its customers in an effort to assess the demand level and potential candidates for this capacity.

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