Tenneco Gas's ventures group, Houston, has raised $75 million to invest in gas exploration and production by independent operators on the U.S. Gulf Coast.
Institutional investors committed $50 million to the fund and a group of industrial investors $25 million. Tenneco said the fund will expand to accommodate additional investors through this year.
The company's ventures group is evaluating acquisition and drilling opportunities with independents. Ventures group capital will be invested in independent exploratory, development, and producing properties.
"Independents have proven to be the low cost finders of oil and gas and need capital, while institutional investors are looking for opportunities with above average rates of return and moderate risk," said Michael Ronca, general manager of Tenneco Gas's ventures group.
"This program combines Tenneco Gas's expertise with the needs of these two groups and at the same time attaches gas reserves to the Tenneco Gas pipeline system."
Ronca said industrial customers, utilities, and municipalities that want to lock in secure gas supplies can use Tenneco's expertise in acquiring reserves.
"Once reserves are acquired, Tenneco Gas will offer these customers additional services, including gas marketing, storage, and peak day requirements," Ronca said.
Tenneco Gas Pres. Steve Chesebro' said participating in development and pipeline connection of additional gas reserves is an example of the new products and services Tenneco will offer in the business environment created by the Federal Energy Regulatory Commission's Order 636.
"Tenneco intends to be on the leading edge of these changes and is committed to meeting the demands of our customers," Chesebro' said.
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