RUHRGAS BUYS 20% INTEREST IN UNIT OF TENNECO

German gas supplier Ruhrgas AG, Essen, has bought a 20% interest in Tenneco Energy Resources Corp. (TERC) from Tenneco Gas, Houston. Ruhrgas sees the move as a way of learning about the U.S. natural gas market, as well as a way of making money. "The U.S. gas market will offer good margins over the next few years," a spokesman said. For Tenneco the deal represents a chance to look for joint ventures with Ruhrgas in western Europe. The partners have set up a working group to study prospects.

Feb. 21, 1994

2 min read

German gas supplier Ruhrgas AG, Essen, has bought a 20% interest in Tenneco Energy Resources Corp. (TERC) from Tenneco Gas, Houston.

Ruhrgas sees the move as a way of learning about the U.S. natural gas market, as well as a way of making money. "The U.S. gas market will offer good margins over the next few years," a spokesman said.

For Tenneco the deal represents a chance to look for joint ventures with Ruhrgas in western Europe. The partners have set up a working group to study prospects.

"It is clear that the U.S. gas industry differs greatly from the European industry," said Burckhard Bergmann, a member of the Ruhrgas executive board. "Developments in the U.S. cannot simply be transposed to Europe."

TERC operates 3,200 km of pipeline, mainly in Texas. The company delivered 25 billion cu m of gas in 1993.

Ruhrgas operates 9,300 km of pipeline and 10 underground storage sites with total capacity of more than 3 billion cu m of gas. Ruhrgas sold 50 billion cu m of gas in 1993.

HUNGARIAN VENTURE

Ruhrgas also agreed on initial cooperation with MOL Magyar Olaj es Gazipari Rt., Budapest, with a view to supplying gas via Germany, to Hungary.

The move marks MOL's move to diversify its gas sources, improve security of supply, and expand the Hungarian gas market.

Ruhrgas said initial projects will include sale of western gas to Hungary, expansion of the country's gas supply infrastructure, and installation of gas metering and regulation equipment.

A connecting pipeline from Austria to Hungary also is envisaged, as a means of providing backup deliveries of gas to Hungary.

Last year MOL sold 10 billion cu m of gas, one half produced in Hungary and the other half in Russia. The market is expected to expand to 11 billion cu m/year by 2000.

MOL operates a 5,200 km pipeline network and three underground storage sites with combined capacity of more than 2 billion cu m of gas.