Enron Capital & Trade Resources Corp. (ECT) chose IONATechnologies’ Orbix and OrbixTalk products for real-time energytrading. The new trading system, which enables Enron traders tocapture and process complex deals, currently supports natural gastrading and later will be extended to support electricity and otherenergy commodities. ECT’s trading system, called Sitara, alsoallows traders to perform real-time portfolio and positionmanagement. The new system has been deployed in Houston and will bedeployed worldwide.
Articles from Capital
Amerada Hess Corp. announced it will be chopping capitalexpenditures by $900 million next year from the $1.45 billion spentthis year. It also plans to reduce its exploration and productionwork force by 400 positions, a 20% reduction in the U.S. and theU.K., resulting in $18 million in annual savings after taxes.
Enron Capital & Trade Resources (ECT) agreed to acquireCogen Technologies’ interests in three power plants for $1.1billion and the assumption of about $350 million in non-recoursedebt. ECT will make the acquisition through a special purposeentity in which ECT will own a 50 percent interest. The entity willinvest up to $130 million in equity, with the balance of thepurchase price funded by non-recourse borrowings provided byfinancial institutions. The transaction is expected to close inearly 1999.
TransCanada del Bajio was awarded a permit to build and operatea system to transport gas from Calamanca, Guanajuato, Mexico, tothe capital city of Aquascalientes. Mexico’s Energy RegulatoryCommission (CRE) awarded the permit to the consortium made up of TransCanada Pipelines Ltd. (95%) and Mexico’s Corporacion GUTSA(5%). The project entails construction of a 126-mile network of 12-and 16-inch pipelines with capacity of 90 MMcf/d. TransCanada delBajio will invest $56.4 million during the first five years of thesystem’s operation. The project is intended to supply gas to theBajio geographic zone whose distribution permit has been put up forbidding by the CRE. The winner of this permit will be announced byDec. 17.
Enron Capital & Trade Resources Corp. (ECT), SyntroleumCorp., and SLH Corp. contributed a total of $3 million to funddetailed engineering, land purchase and other development costs foran 8,000 barrel/d gas-to-liquids specialty product plant inSweetwater County, WY, to be developed by Syntroleum. Subject toconditions, ECT committed an additional $14.5 million for aminority interest in the plant.