In a move that brings together two of the industry’s 800-poundgorillas, Texaco and Enron North America announced yesterday theyare combining their Louisiana assets and marketing in a new jointventure called Bridgeline Holdings LP.

The venture will have a staff of about 85 employees who willoperate the Bridgeline and Louisiana Resources intrastate pipelines(including the Henry Hub, the physical delivery point for gasfutures traded on the New York Mercantile Exchange), theNapoleonville and Sorrento salt dome storage facilities and amarketing division with about 1 Bcf/d of gas sales. It will beginoperations March 1.

“The formation of this joint venture reflects a continuation ofTexaco’s long-term commitment to the industrial and utility marketsof south Louisiana,” said Terry F. Hudgens, president of TexacoNatural Gas Inc. “As the leading marketer of natural gas andnatural gas services in this area, Texaco is excited aboutcombining the strengths of Bridgeline and Louisiana ResourcesCompany to enhance the products and services we offer to customersin this increasingly competitive market.”

Cliff Baxter, chairman and CEO of Enron North America, said thenew company would have greater overall system flexibility that willimprove operating efficiencies. “By combining Enron’s trading, riskmanagement and financial expertise with Texaco’s marketingfranchise, we will be able to expand our strategic position andoptimize the gas supply for customers,” he said.

Bridgeline Holdings, to be headquartered in Houston, will havecombined facilities consisting of more than 1,000 miles oftransmission and distribution pipeline, 7 Bcf of salt dome storagecapacity, with an additional 6 Bcf in development, and 33,050horsepower of compression. The combined system will have adiversified gas supply, high and low pressure operatingcapabilities and access to the interstate pipeline grid in southLouisiana and the Henry Hub. Bridgeline Holdings expects to havesales of more than 1 Bcf/d of gas.

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