Enron Corp. sells 50 percent of China power project to Singapore Power PTE Ltd

Business Wire, Feb 6, 1996

HOUSTON--(BUSINESS WIRE)--Feb. 6, 1996--Enron Corp. announced Tuesday that it has entered into an agreement to sell a 50 percent interest in its 150 megawatt (MW) power facility in Hainan, an island off the southeastern coast of mainland China, to Singapore Power PTE Ltd.

Construction of the power facility was completed in January 1996. Under the terms of the power purchase agreement signed with Hainan Electric Power Company (HEPCO) in September 1994, the facility has begun to sell 80MW of combined-cycle power to the utility.

The remaining 70MW from the facility will be sold to the utility in two phases over the next nine months. An additional 20MW will be sold beginning in June and the remaining 50MW beginning in September.

"We are extremely pleased that Singapore Power has joined us as a partner in this fast-track project, which was brought on-line in only 14 months," said Kenneth L. Lay, chairman and CEO of Enron Corp. "Enron will offer its remaining 50 percent interest in the project to Enron Global Power & Pipelines L.L.C. in the near future."

"Our tie-up with Enron is a strategic move to collaborate with power experts in our regionalization policy," said Ho Kwon Ping, chairman of Singapore Power. "We believe in complementing our expertise for a competitive edge in all our regional investments."

Enron Corp., one of the worlds leading integrated natural gas companies with approximately $14 billion in assets, operates one of the largest natural gas transmission systems in the world; is the largest purchaser and marketer of natural gas and the largest independent marketer of electricity in North America; produces and markets natural gas liquids worldwide; owns 61 percent of Enron Oil & Gas Company, one of the largest independent (non-integrated) exploration and production companies in the United States; owns 52 percent of Enron Global Power & Pipelines L.L.C., which is owner and manager of operating power plants and a natural gas pipeline in emerging markets; and is one of the largest independent developers and producers of electricity in the world.

Enron Corp. is traded under the ticker symbol, "ENE."

Singapore Power is the electricity and gas supplier in Singapore with wide experience in power generation, transmission and distribution projects.

Singapore's power infrastructure is reputed for its efficiency, as evidenced by the Swiss-based World Competitiveness Report 1995 which ranked Singapore as No. 1 for building a power supply infrastructure which met business requirements.

Singapore Power has assets worth about S$9 billion and is one of the largest corporations in Singapore. It has seven subsidiaries - two power generating companies, a transmission and distribution company, a power supply company, a gas company, a consultancy firm and an investment company.

CONTACT: Enron Corp.

Carol Hensley, 713/853-6498