Anadarko Energy Services Co., the wholesale marketing affiliateof Anadarko Petroleum, is gaining entrance into the retail marketthrough an agreement with independent marketer Mountain Energy.

Mountain Energy recently signed an agreement with AnadarkoEnergy Services Co. and a related agreement with Manchester GasStorage Facility. The agreements are said to position MountainEnergy as a market leader in Kansas and Missouri.

Mountain Energy serves more than 600 small and medium-sizedindustrial and commercial end users in Kansas and Missouri. Thecompany concentrates its efforts primarily on the Kansas GasServices and Williams Gas Pipeline systems. The company also hassales offices in Topeka and Wichita, KS.

Anadarko Energy Services and Anadarko Petroleum have significantexploration, production and gas gathering operations in Kansas andOklahoma. Anadarko Energy Services can deliver more than 200 MMcf/dinto the Kansas Gas Services and Williams pipeline systems fromabout 2,500 wells in the Hugoton field in southwest Kansas to serveMountain Energy’s customers. Anadarko Energy Services will supplygas to Mountain Energy for its retail activities while it continuesto build its own wholesale business. In the second quarter,Anadarko Energy Services had physical marketed volume of about 1.4Bcf/d, including equity and third-party gas. In 1998, the companymarketed about 1.2 Bcf/d.

“This arrangement with Mountain Energy strategically complementsour wholesale marketing efforts in Kansas, Oklahoma and Missouri,”said Darryl Kennedy, manager of market development for AnadarkoEnergy Services. “Anadarko Energy Services will continue to focusits efforts on serving and developing wholesale markets byproviding reliable and competitive supply on all major pipelineswithin the Midcontinent region. Anadarko Energy Services willutilize its expertise and assets, including storage, processing,pipeline flexibility and trading capacity, to provide MountainEnergy with reliable and competitively-priced natural gas to meetits customers’ needs.”

Mountain Energy also agreed to act as agent for the sales andmanagement of capacity for the Manchester Gas Storage Facility.Anadarko Energy Services is a significant holder of capacity atManchester. Located in Grant County, OK, the Manchester facilityhas more than 12 Bcf of storage capacity and substantialdeliverability into the Williams (more than 100 MMcf/d) andOklahoma Natural Gas (more than 30 MMcf/d) systems.

“The relationships with Anadarko Energy Services and Manchesterbring additional flexibility to our inventory control and provideaccess to supply and deliverability during times of criticaltemperature fluctuations. With these arrangements, Mountain Energynow has additional strength to substantially grow and meet thechanging needs of natural gas customers in Kansas and Missouri,”said Mountain Energy President Mike Eichenberg.

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