Message-ID: <10982865.1075856605758.JavaMail.evans@thyme>
Date: Tue, 13 Mar 2001 09:41:00 -0800 (PST)
From: sandeep.kohli@enron.com
Subject: LNG by Rail
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Vince, 

I was thinking about the type of things you could be talking to Jeff Shankman 
about, in the Dabhol LNG context.  It occurred to me that one way to collect 
on regas charges, and still find alternate cutomers for gas is through the 
railways.

Some time back, I had looked into the possiblility of transporting LNG by 
train.  Apparently, technology exists wherein LNG can be put into cryogenic 
containers that can be trucked as well as the same containers being loaded 
from trucks to train bogies.  I believe this maybe a way to earn some monies 
with LNG by developing just such a market in India for Commercial customers.

It is pertinent to note that the Konkan Rail line is just about 1 hr. 45 
minutes from the Dabhol plant.  Trucks from Dabhol could carry LNG to the 
rail line at Guhagar from where it could travel up and down the west coast of 
India.  If we target end-consumers directly, we could easily sell at retail 
type prices, and build in a large margin, even if the volumes disposed are 
relatively smaller.  (The alternative fuel for most of these establishments 
is diesel or naphtha which is highly priced, and mostly trucked along 
roads,increasing costs).  The end aim is to keep income targets in India, so 
that the Analysts do not have a field day with the stock.

Hence keeping activity up in India, and showing that solutions exist, will 
keep stock price buoyed.  We could explore this idea if it appeals!

Regards,
Sandeep.