HOUSTON, Oct. 14, 1999 (PRIMEZONE) -- Ingleside Cogeneration, L.P., a joint venture subsidiary of Occidental Petroleum Corporation (NYSE:OXY) and Conoco (NYSE:COC.A) (NYSE.COC.B), has completed two months ahead of schedule construction and start-up of a 440-megawatt (MW) cogeneration facility at Ingleside in South Texas.
One of the world's most advanced and efficient power plants, the $200 million, natural gas-fired unit can produce approximately 440 MW of electricity and up to 1.1 million pounds of steam per hour. It was constructed to provide power for the adjacent OxyChem and DuPont chemical facilities. In addition, enough excess electrical power will be sold into the newly deregulated Texas grid for approximately 75,000 homes and businesses.
The facility was jointly developed by Occidental Energy Ventures, Inc., a wholly owned subsidiary of Occidental Petroleum Corporation, and Conoco Global Power, a wholly owned subsidiary of Conoco.
OxyChem, also a subsidiary of Occidental Petroleum, will operate the cogeneration facility on behalf of the partnership and has entered into a long-term contract to purchase all steam and electricity requirements of its adjacent chemical complex from the cogeneration plant.
J. Roger Hirl, president and chief executive officer of OxyChem, said, "Energy is the single largest manufacturing cost component at the OxyChem Ingleside complex. The ability to control this cost through the use of cogeneration will enhance OxyChem's position as one of the world's lowest cost producers of chlor-alkali and related products."
"The synergies brought to the Ingleside project translate into outstanding operational fuel savings of as much as 40 percent, when compared to conventional technology," said Ron Walsh, president of Conoco Global Power. "We are providing this very efficient and reliable source of energy for our customers two months ahead of schedule, because of our fast-track development process."
OxyChem, a leading chemical manufacturer with interests in basic chemicals, vinyls, petrochemicals and specialty products, is a subsidiary of Occidental Petroleum Corporation, an international oil and gas exploration and production company.
Conoco Global Power is a wholly owned subsidiary of Conoco, a major integrated energy company based in Houston and active in 40 countries.