Dynegy Inc. (ticker: DYN, exchange: New York Stock Exchange (.N))
News Release -
ISAGEN and Dynegy Inc. Announce Wholesale Power/Fuels Marketing Joint Venture in ColombiaHOUSTON--(BUSINESS WIRE)--July 7, 1998--Dynegy Inc. (NYSE:DYN) headquartered in Houston, and ISAGEN S.A. E.S.P., based in Medellin, Colombia have announced an agreement in principle to form the first natural gas and power marketing joint venture to operate in the Colombian wholesale electric and natural gas markets.
The ISAGEN/Dynegy joint venture creates a pioneering commercial relationship designed to develop energy markets in Colombia. It will broaden each company's ability to conduct natural gas marketing, electric power marketing and related fuel transactions by combining the energy marketing, trading and risk management skills of Dynegy with the market experience, power generation and energy supply capabilities of ISAGEN. The alliance will allow Dynegy and ISAGEN to offer wholesale customers in Colombia a full spectrum of energy services. Key personnel from each company will be aligned together to form the joint venture.
According to Chuck Watson, chairman and chief executive officer of Dynegy Inc., "Dynegy has a vision of capitalizing on our unique strengths to build a premier group of alliance relationships globally. We believe this concept will be the basis for our continued growth in the highly competitive, deregulated energy business.
ISAGEN S.A. E.S.P. general manager Guillermo Arango Rave said, "This alliance will provide shareholder benefits through increased sales, and customer benefits through more efficient utilization of competitively-priced power and fuels. We believe that experienced marketers with access to both power and natural gas have the tools for success in this market."
The Colombian market, which was deregulated in 1994, consumes approximately 500 MMcfd of natural gas and 45 thousand GWH of power.
ISAGEN S.A. E.S.P. is currently the third largest power generating company in Colombia. Its main business was power generation and electricity trading, until its bylaws were modified to meet new Colombian energy market conditions allowing it to become more competitive.
ISAGEN has a capacity of 1,661 MW, 15 percent of the total generation capacity of Colombia. In 1997, ISAGEN produced 16 percent of the country's total electricity demand.
Dynegy Inc., formerly NGC Corporation, is one of the leading marketers of energy products and services in North America. The name Dynegy reflects the company's evolution from a natural gas marketing company to a dynamic energy company with a full energy network to meet the growing challenges of the energy market of the future. Through its leadership position in gathering, processing, transportation and marketing of energy commodities and independent power generation, the company provides energy solutions to its customers in North America, the United Kingdom, Australia and now, Colombia.