FW: EnTouch Newsletter ,
 -----Original Message-----
From: =09Enron Announcements/Corp/Enron@ENRON [mailto:IMCEANOTES-Enron+20An=
nouncements_Corp_Enron+40ENRON@ENRON.com]  On Behalf Of ENA Public Relation=
s@ENRON
Sent:=09Wednesday, July 11, 2001 11:38 PM
To:=09En Touch Newsletter List@ENRON
Subject:=09EnTouch Newsletter


=20


BUSINESS HIGHLIGHTS

Enron Global Markets
EGM's global crude and products group closed its largest trades to date wit=
h EOTT Energy Partners, L.P. (NYSE: EOT) on June 29,2001.  Enron Gas Liquid=
s, Inc. ("EGLI") is the counterparty to a 10-year toll conversion agreement=
 and a 10-year storage capacity agreement that also provides transportation=
.  The toll conversion agreement calls for EGLI to deliver a combination of=
 feedstocks (methanol, natural gas, and normal butane) to be converted into=
 various offtake products, primarily MTBE.=20

As a part of the 10-year conversion agreement, EGLI has the option to conve=
rt the facility into an Iso Octane plant.  The option to convert is EGLI's =
sole and exclusive right.  In addition, the call helps to mitigate the regu=
latory risk associated with the MTBE market.

Prior to the close of the 10-year conversion and storage capacity agreement=
s, Enron's corporate development group organized the sale of the hydrocarbo=
n-processing complex in Morgan's Point, Texas, and a liquids pipeline grid =
system to EOTT for approximately $120 million.  The asset sale was predicat=
ed on the agreements to be entered into between EGLI and EOTT. =20

These combined agreements represent EGM's largest transaction to date.

EGM Fundamentals
EGM Fundamentals welcomes Andrew Hill to the Houston office for a six-month=
 assignment from London.  Andrew joined EGM in March as a Senior Specialist=
 and has been instrumental in developing the growing range of EGM Fundament=
als publications such as Critical Mass and The Week Ahead.  In Houston, And=
rew will be working with Richard Lassander to manage analysis of the crude =
and products markets.  Prior to joining EGM, Andrew worked as a management =
consultant specializing in Latin America with Wood McKenzie.

EGM Fundamentals has begun analysis of domestic freight markets.  This new =
effort, managed by Jeff Andrews, is being coordinated with Matt Arnold's fo=
rward trading group in Enron Freight Markets (EFM).  Current analysis is fo=
cused on over-the-road trucking, following the initial commercial focus of =
EFM, and the development of diesel hedging strategies.  Related projects in=
clude modeling the seasonality of trucking demand and diesel fuel consumpti=
on and forecasting on-road diesel prices.  Within the next three to four we=
eks, analysis will begin of the intermodal freight network.  Interested par=
ties should watch the EGM Fundamentals intranet site (<http://egmfundy.corp=
.enron.com>) for updates.

East Power Origination
The Sand Hill Energy Center in Austin was dedicated on Wednesday, July 11th=
 at 10:00 am.  The $93.7 million project is the first peaking facility of i=
ts kind in Texas to be constructed with selective catalytic reduction pollu=
tion control equipment that reduces the nitrogen oxide (NOx) emission rate =
by 80 percent.  NOx emissions from the units are 5 parts per million (ppm),=
 which is considerably less than the amounts allowed by state and federal r=
egulations.  Congratulations to the development team!

IN THE NEWS

"For California to continue this bogus claim of $8.9 billion, I think just =
shows that they are not interested in any kind of a settlement," Enron spok=
esman Mark Palmer said. "They are just interested in creating a whipping po=
st. The last thing that the political leadership in California wants to do =
is take responsibility for the problem they created."  Houston Chronicle, J=
uly 10, 2001.


WELCOME
New Hires
EGM  - Todd Litton
EIM   - Ayesha Kanji, Matt Christiansen
ENA  - Alex McElreath, Chris Czuppon, Joanne Rozycki, Todd Callaway, Lisa K=
oerselman, Christopher Davis, Sandra Haldeman

Transfers (to or within)
ENA - Michael Newlin, John Garrison, Cheryl White, Diane Cook, Jennifer Mar=
tinez
EIM - Sylvia Sauseda
EGM - John Cote, Laura Mireles, Tim Norton, Doris Wilhoite


NUGGETS & NOTES

Travel tip of the week:
Out of Town Calling. Direct calls from hotels are not encouraged. When call=
ing to the Enron Building, 3 Allen Center or Omaha, use of the 1-800-97-ENR=
ON is often the most cost effective method.  For other locations, dial 1-80=
0-96-ENRON, enter the number you are calling and then your AT&T corporate c=
alling card number.  Please contact your Lan support department for 1-800 d=
ial-in numbers for cost effective remote connections.

Global Strategic Sourcing: UPS
As part of the recently negotiated agreement with United Parcel Service (UP=
S), Enron employees may now utilize two new letter centers when sending pac=
kages after hours.  These letter centers are located in Three Allen Center,=
 on the ground level, behind the down escalator, near the U.S. Postal Servi=
ces self-service area and in the Enron Building, at the back of the escalat=
ors near the automated teller machine. =20

Letter-sized envelopes, as well as boxes up to 18"x 13" x 3" can be shipped=
 via Next-Day Air, Second-Day Air, Third-Day Select, UPS International and =
UPS World-Wide Express Service.  Pick up times at the letter centers are 7:=
45 p.m. for Three Allen Center and 8:00 p.m. for the Enron Building, Monday=
 through Friday.

Contact: Glenn Lewis, Global Strategic Sourcing contract manager at 713-646=
-7512.


EnronOnline Statistics

Below are the latest figures for EnronOnline as of July 12, 2001:

     =09Total Life to Date Transactions > 1,180,000
Life to Date Notional Value of Transactions > $696 billion


NEWS FROM THE GLOBAL FLASH

Enron Secures First Industrial Customer Gas Supply Deal In Germany=20
Congratulations to the German Gas Origination team for closing its first ph=
ysical supply contract with an industrial customer.  The customer, based in=
 Stendal, Germany, operates steam boilers for a milk factory and will be ta=
king gas from Enron for a contract of 9.3 MW of interruptible one-year base=
 load.

In connection with this supply contract the Continental Gas Trading team co=
mpleted a gas supply transaction, the first inside Germany by a non-incumbe=
nt player, with EnBW at Steinitz, to overcome capacity constraints expected=
 in Q3 this year.  Due to the fragmented gas industry in Germany, Enron had=
 to secure transport with no less than four network operators inside German=
y in order to close the gas supply deal.  "Although we are happy that we ha=
ve successfully secured all necessary transportation to fulfill our contrac=
tual obligations, it was quite a challenge to reach agreement with four net=
work operators -- while this was a transaction only within Germany, the neg=
otiation with the network operators was as complex as securing gas transpor=
t from Ireland through the UK and Belgium into France," commented Carsten H=
aack, who closed this deal together with Helge-Juergen Beil, Ulrich Finke a=
nd Gordon Smith from the German Gas Origination team.  Another important el=
ement of the deal is that the team succeeded in establishing the first tran=
sportation contract for VNG, Germany's largest German import company after =
Ruhrgas. "This contract will serve as a useful basis for future gas deals, =
especially in East Germany, " said Haack. "But more importantly, this deal =
will send a message to the market that once again Enron has proven to custo=
mers it can deliver on its promises and, of equal importance, that network =
operators had better take our transportation requests seriously!" he added.

ETOL Celebrates New Deals With Du Pont
Congratulations to Enron Teesside Operations Ltd (ETOL) for signing a serie=
s of deals with chemical giant Du Pont for supplies to its facilities at Wi=
lton International.

A new arrangement between the two parties means Enron will supply two milli=
on tonnes of steam and 30 MW of electricity a year to Du Pont's nylon plant=
s. New agreements have also been reached for gas supplies, and for the prov=
ision of a number of key site services including pipeline maintenance, secu=
rity and emergency response.

Paul Gavens, CEO of ETOL, said: "Securing an exclusive long-term supply agr=
eement of this nature with one of our largest customers is a fantastic achi=
evement for ETOL. The new arrangements extend the terms of our current cont=
ract for steam and power to 2010, restructure the pricing arrangements and =
offer the opportunity for adding value to both companies by optimizing the =
operation of their respective assets."


Enron's Northernmost Partner!
Enron Nordic Energy has entered into a partnership agreement with Varanger =
Kraft AS.  Under the terms of the deal, Enron Nordic Energy will assist Var=
anger in hedging its power sales, power prices and area prices.  The partne=
rship will also involve the development of a risk strategy for Varanger and=
 the provision of weather risk products relating to water flow and temperat=
ure risk.  In addition, the agreement will open opportunities for Enron to =
develop contacts with Varanger Kraft's Russian partners and the Russian mar=
ket generally.  Following a deal with Luster Energiverk, this is the second=
 such agreement closed by Enron Nordic Energy in recent weeks.

This is our first partner in the Nordic region with established relationshi=
ps in Russia, through its ownership of a grid connected to Russia.  Varange=
r has hydro power plants on the Passvik river near the Russian border.  As =
the Passvik river flows on both sides of the border, Varanger works in coop=
eration with Russian partners to manage the water storage.=20


LEGAL STUFF
The information contained in this newsletter is confidential and proprietar=
y to Enron Corp. and its subsidiaries.  It is intended for internal use onl=
y and should not be disclosed.

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