Partners

Calgary-based Fort Chicago Energy Partners L.P. — which owns a26% equity in the Alliance Pipeline project — said that itslargest unit holder, Gendis Inc., plans to distribute 8.5 millionunits to shareholders by Nov. 24. Gendis, based in Winnepeg, willretain 6.2 million units of Fort Chicago following the transaction.

Chevron, the Royal Dutch/Shell Group and Schlumberger havebecome equal partners in a new Houston-based company, OpenSpiritCorp., which will offer a standardized software infrastructure forthe energy industry. The initial framework was funded by OpenSpiritAlliance, a three-year-old collaboration of exploration andproduction companies and software vendors that studies ways tobetter develop, deliver and use E&P applications. OpenSpiritCorp.’s vendor-neutral and platform-independent applicationframework is expected to be available before the end of the year.Neil Buckley, former president of U.S. operations for Merak, adivision of GeoQuest, will serve as CEO. More information isavailable at www.openspirit.com.

Kinder Morgan, Inc. announced plans to contribute $300 millionin assets to Kinder Morgan Energy Partners, L.P., the company’smaster limited partnership. The largest asset to be contributed isKinder Morgan Texas Pipeline, formerly MidCon Texas, a 2,600-milenatural gas pipeline system that extends from South Texas toHouston along the Texas Gulf Coast.

Coral Power LLC will supply the natural gas and collect thepower output of a 900 MW generating station to be built andoperated by Tenaska Alabama II Partners L.P., a limited partnershipcomprised of affiliates of Tenaska Inc. The two companies announcedyesterday they had executed an energy conversion agreement for thefacility to be located near Billingsley, AL. Coral plans to marketthe power throughout the Southeast. It is the second of this typeof agreement between Coral and Tenaska. The first was signed inAugust, 1999 for an 845 MW Tenaska Gateway Generating Station inRusk County, TX. The initial financing process for the project willbegin early next year with construction slated to begin in thesummer of 2001 and be completed for summer 2003.

William A. (Andy) Lang has joined Coast Energy Group (CEG), aSugar Land, TX division of CornerStone Propane Partners L.P., aspresident and COO. Lang most recently directed activities of MHPStorage as head of NiSource’s EnergyUSA-TPC affiliate. Prior tothat he was a managing director of Southern Co. Energy Marketingand senior vice president at Vastar Resources. Coast Energy, a fullservice energy solutions company, supplies, purchases, processesand markets over 48,000 b/d of natural gas liquids.

Duke Energy Gas Transmission (DEGT) announced it has enteredinto a definitive agreement to purchase Market Hub Partners (MHP)and its 23 Bcf of natural gas salt cavern storage. The unit isbeing spun off by NiSource Inc. as a result of its planned mergerwith Columbia Energy.

NiSource Inc.’s Market Hub Partners Storage L.P. (MHP) saw itsnet income rise 13% to $2.6 million for the first quarter of thisyear, up from $2.3 for the first quarter of 1999. Revenues rose to$8.2 million, up from $8 million last year at the Houstonsubsidiary, mostly because of expanded working gas storage capacityat its Moss Bluff, TX and Egan, LA natural gas storage facilities.

NiSource Inc.’s Market Hub Partners Storage L.P. (MHP) saw itsnet income rise 13% to $2.6 million for the first quarter of thisyear, up from $2.3 for the first quarter of 1999. Revenues rose to$8.2 million, up from $8 million last year at the Houstonsubsidiary, mostly because of expanded working gas storage capacityat its Moss Bluff, TX and Egan, LA natural gas storage facilities.

AIG Financial Products Corp. and Enron Investment Partners Co.have acquired minority stakes in TreasuryConnect, a transactionexecution system for financial products traded between corporationsand banks. Bruce Usher, co-founder and president ofTreasuryConnect, said he was “extremely pleased” with AIG’s andEnron’s investment in his company, and said that “it reflectsfavorably on our technology and its ability to improve trading andoperational efficiency.” Even though it domestically transacts morethan $6 trillion a year, the interest rate and currency swap marketis one of the last markets to migrate to the Internet because ofthe relative complexity of derivative products, and the subtletiesof the trading process, according to Usher. TreasuryConnect, withoffices in New York City and Los Angeles, offers an Internet-basedtrading platform specifically designed for financial transactionsbetween banks and corporations. It also offers direct back officelinks for straight through processing, documentation solutions,historical data, research and analytical tools to facilitatetrading. AIG Financial is a wholly-owned subsidiary of AmericanInternational Group Inc. and Enron Investment is a wholly-ownedsubsidiary of Enron Corp.