ENRON TO HELP EXPAND ARGENTINE GAS LINE

ENRON TO HELP EXPAND ARGENTINE GAS LINE

A group led by Enron Corp. of the U.S. will invest $90 million to increase transmission capacity of a natural gas trunk line feeding Buenos Aires, an industry official said.

Installation of four compressor plants along the 861-mile-long Neuba-II gas line will raise throughput by 37.8 percent to 900.5 million cubic feet a day by Aug. 1, 1994, said George Wasaff, marketing director for Transportadora de Gas del Sur SA.The gas source is the Loma de la Lata field in southwestern Neuquen province. The field's proven reserves as of Jan. 1 totaled 14.54 trillion cubic feet, compared with 20.51 trillion for Argentina overall, according to the most recent official data available.

Transportadora de Gas del Sur, which operates two other gas trunk lines, is 70 percent owned by Enron, Citicorp, 21 other overseas banks and Argentine oil company Perez Companc. The government holds a 30 percent stake, but plans to reduce this level next year to 10 percent through the sale of shares in world capital markets, according to Economy Ministry officials.