NGC Corp. and Texaco signed a memorandum of understandingyesterday to create a new joint venture company that will useexisting gas liquids pipelines to create a 290-mile, bi-directionalnatural gas liquids (NGL) transportation system, extending fromSorrento, LA, to Mont Belvieu, TX.

This system will connect to third party NGL storage in Sorrento,Anse La Butte and Hackberry, LA, and to fractionation in Erath andLake Charles, LA, as well as Mont Belvieu, Texas. It is designed toprovide both producers and petrochemical companies with expandedmarket opportunities. It is expected to be operational by thefourth quarter.

Texaco will contribute 180 miles of its TENDS (Texaco ExpandedNGL Distribution System) pipeline between Sorrento and LakeCharles, with a line capacity of 50,000 b/d. NGC will contribute110 miles of its 65,000 b/d NGL pipeline between Lake Charles andMont Belvieu. The expected increased demand for NGL, Y-grade, andpropane-propylene movements between Mont Belvieu and the southLouisiana industrial corridor is expected to support the system’sgrowth to 120,000 b/d by 2002.

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