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Anadarko Energy Services Aligns With Mountain Energy

Anadarko Energy Services Aligns With Mountain Energy

Anadarko Energy Services Co., the wholesale marketing affiliate of Anadarko Petroleum, is gaining entrance into the retail market through an agreement with independent marketer Mountain Energy.

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

Mountain Energy serves more than 600 small and medium-sized industrial and commercial end users in Kansas and Missouri. The company concentrates its efforts primarily on the Kansas Gas Services and Williams Gas Pipeline systems. The company also has sales offices in Topeka and Wichita, KS.

Anadarko Energy Services and Anadarko Petroleum have significant exploration, production and gas gathering operations in Kansas and Oklahoma. Anadarko Energy Services can deliver more than 200 MMcf/d into the Kansas Gas Services and Williams pipeline systems from about 2,500 wells in the Hugoton field in southwest Kansas to serve Mountain Energy's customers. Anadarko Energy Services will supply gas to Mountain Energy for its retail activities while it continues to build its own wholesale business. In the second quarter, Anadarko Energy Services had physical marketed volume of about 1.4 Bcf/d, including equity and third-party gas. In 1998, the company marketed about 1.2 Bcf/d.

"This arrangement with Mountain Energy strategically complements our wholesale marketing efforts in Kansas, Oklahoma and Missouri," said Darryl Kennedy, manager of market development for Anadarko Energy Services. "Anadarko Energy Services will continue to focus its efforts on serving and developing wholesale markets by providing reliable and competitive supply on all major pipelines within the Midcontinent region. Anadarko Energy Services will utilize its expertise and assets, including storage, processing, pipeline flexibility and trading capacity, to provide Mountain Energy with reliable and competitively-priced natural gas to meet its customers' needs."

Mountain Energy also agreed to act as agent for the sales and management of capacity for the Manchester Gas Storage Facility. Anadarko Energy Services is a significant holder of capacity at Manchester. Located in Grant County, OK, the Manchester facility has more than 12 Bcf of storage capacity and substantial deliverability into the Williams (more than 100 MMcf/d) and Oklahoma Natural Gas (more than 30 MMcf/d) systems.

"The relationships with Anadarko Energy Services and Manchester bring additional flexibility to our inventory control and provide access to supply and deliverability during times of critical temperature fluctuations. With these arrangements, Mountain Energy now has additional strength to substantially grow and meet the changing needs of natural gas customers in Kansas and Missouri," said Mountain Energy President Mike Eichenberg.

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