Houston-based Adams Resources & Energy, Inc. is expandingits natural gas business, setting up a downstream office inProvidence, RI to market to industrial and commercial customers.

The company, which had been predominantly a crude oil wholesalerand transporter until about a year ago, took advantage of anopportunity to hire substantially all the personnel previouslyemployed by TXU Energy Serices. Perry Bernstein, who had been vicepresident of marketing for the TXU unit, will head the New Englandoffice for Adams Resources Marketing Ltd., as general manager.

“Presently, we expect to sell over one million MMbtu’s oralternatively 1 Bcf per month of natural gas to the end-user marketduring the fall/winter seasonal period,” Bernstein said. Adamsexpects to take advantage of the deregulation trend in the six NewEngland states.

K.S. “Bud” Adams Jr., Adams chairman, said the expansion “is thenatural complement to our existing natural gas wholesale supply anddistribution business.”

Richard Abshire, vice president — finance for the parentcompany and president of the marketing unit and the oil subsidiary,GulfMark Energy, said Bernstein had set up the move after TXUclosed its office almost a year ago. The marketing unit will be”starting from scratch” to market to manufacturing units andinstitutions such as hospitals.

“We saw an opportunity to make a margin for a service,” Abshiresaid of the company’s decision to move into the retail market. “Weexpect natural gas to contribute about $1 billion in revenues thisyear,” he added, estimating total revenues at about $6 billion. “Wehad about $3.9 billion in revenues for the first six months.”Traditionally, Adams has operated as a crude oil wholesaler andtransporter from offshore Louisiana. It started wholesaling naturalgas from the Texas and Louisiana Gulf Coast about a year ago.

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