Dynegy Issues Clarification On Commitment to UK Natural Gas Storage Assets

Business Wire, Dec 18, 2001

Business/Energy Editors

HOUSTON & LONDON--(BUSINESS WIRE)--Dec. 18, 2001

Dynegy Inc. (NYSE:DYN) today issued a clarification on its commitment to its natural gas storage facilities and related assets in the United Kingdom:

During a December 17 conference call with investors, analysts and media to discuss its $1.25 billion capital restructuring program, the company discussed planned asset sales and capital expense reductions totaling $750 million in 2002. As a part of this discussion, Dynegy management said it would consider the sale of a minority position only in Dynegy Storage Limited (formerly BG Storage Limited). Such a sale, if undertaken, would in no way impact Dynegy's service to new and existing storage customers.

"This acquisition has strengthened our competitive position in the UK and is a significant step toward our long-term goal to replicate our North American energy delivery network throughout Europe," said Gary Cardone, president of Dynegy Europe. "We are committed to maintaining our operational and commercial control of these assets."

Dynegy's acquisition of BG Storage, which closed on November 28, 2001, included 30 wells with five offshore platforms, nine salt caverns, approximately 19 miles (32 kilometers) of pipelines and an onshore natural gas processing terminal. BG Storage's 260 employees remained employed under Dynegy Storage.

Dynegy Inc. is one of the world's premier energy merchants. Through its global energy delivery network and marketing, logistics and risk management capabilities, Dynegy provides innovative solutions to customers in North America, the United Kingdom and Continental Europe.

Through Dynegy Europe, Dynegy has been an active participant in UK energy markets since 1994 when it became a leading player in the development of a liberalized natural gas market. In 1999, Dynegy Europe entered the UK and Nord Pool electricity markets. With offices in Austria, Switzerland, Holland, Italy and Spain, Dynegy Europe is one of Europe's largest energy marketers and traders and is a significant participant in the communications marketplace.