Rio Bravo Energy, a joint venture between Tidelands Oil &Gas Corp., a Texas-based producer and Hudson SVD, a natural gasgathering and marketing company, announced the formation of SonoraPipeline yesterday. Sonora will own and operate a 53-mile gatheringsystem located in Dimmit and Zavala counties, TX. This line will beinterconnected with Rio Bravo’s Pena Creek Gathering System, whichservices the Chittim Gas Processing Plant recently acquired by RioBravo from Conoco. The plant is a propane refrigeration plant witha nominal capacity of 5 MMcf/d and a liquid fractionation train.The Pena Creek Gathering System which serves the Plant consists of15 miles of gathering and compression facilities.

SkyGen Energy LLC and Coral Energy LP are teaming up to build a250 MW gas-fired cogeneration plant, called Hog Bayou EnergyCenter, near Mobile, AL. SkyGen will be responsible for overallproject development, management and operations. A Coral affiliatehas joined SkyGen as an equity owner of the project, and otherCoral affiliates will supply fuel to the facility and market thepower. The transaction is the second announced by SkyGen and Coralwithin the past two months. In July, the two companies announced asimilar transaction for the Pine Bluff Energy Center in Pine Bluff,AK. The Hog Bayou Energy Center will be constructed adjacent toInternational Paper’s mill near Mobile. Commercial operation isplanned for the second quarter of 2001.

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