Houston-based Amerex Natural Gas Inc. and sister company AmerexPower Inc. together bought the gas and electricity brokeragebusinesses of Houston-based BTU Brokers Ltd. for an undisclosedprice. As a result, Amerex’s daily average of physical and papergas deals grew 12.4% to $287 million, and physical and paper powerdeals increased 5% to $175 million for a combined annual value of$121 billion in gas and power deals.

“This strategic move allows for further consolidation of naturalgas and electric power brokerages,” said Amerex President Steven W.Town. “It’s good for us and the industry. It strengthens ourability to serve our natural gas clients in a number of markets andour electrical power clients in the Southeast, ERCOT (ElectricReliability Council of Texas) and Cinergy, and adds qualifiedenergy professionals to our team.” He said the company is lookingfor more acquisition deals.

Currently, Amerex trades about 100 Bcf/d of gas, and this dealwill add 12 to 15 Bcf to that figure, Town said. Power will seeless of an increase, from about 5 million MWh/d to about 5.5. About80% of Amerex’s gas deals are paper while only about 10% of powerdeals are paper. “We’re trying to smooth that out, so to speak,”Town said. “We’re doing all we can in the power markets to create afinancial product, a viable product that traders can use.”

Town said the acquisition not only strengthens Amerex’straditional voice brokerage but also reinforces its electronictrading alliance with Altra Energy Technologies and Prebon Energyas Amerex and its strategic partners provide market leadership intrade execution. Emerging electronic trading is being integratedinto the market, but Town said Amerex sees strong demand forserving clients with brokers and the added value they offer theestimated 2,000 gas and electric power traders in North America.”There is a need for good, professional brokers to assist increating liquidity for the market, insuring transparency, andtransferring knowledge to the market.”

Joe Fisher, Houston

©Copyright 2000 Intelligence Press, Inc. All rightsreserved. The preceding news report may not be republished orredistributed in whole or in part without prior written consent ofIntelligence Press, Inc.