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Date: Thu, 9 Aug 2001 19:28:24 -0700 (PDT)
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=20


UNITED WAY 2001

Building Houston's Future, Enron's 2001 United Way Campaign, officially beg=
an Monday, August 6 and runs through August 17.  Enron's goal this year is =
$2.9 million and the EWS goal is $1,276,000.  Enron will match every employ=
ee's contribution dollar-for-dollar.

The decision to focus this year's campaign on Building Houston's Future cam=
e directly from our employees, who rallied to help Houston recover from the=
 flood damage caused by Tropical Storm Allison. Enron employees have expres=
sed a strong desire to continue assisting those in need until our city full=
y recovers and there's no better way than to give to the United Way, which =
touches over 50% of the families on the Texas Gulf Coast.

ON-LINE PLEDGING
We are again using an on-line pledging system.  Please click on https://hrg=
lobal.enron.com to make your contribution and learn more about this year's =
campaign. You will need your GIS ID (which is your "9..." number, not your =
"P..." number) and password.  If you are not sure what your ID and password=
 are, please go to https://ehronline.enron.com, click the "Accept" button, =
and then click on "Forgot your User ID or Password?"  If you have questions=
 regarding access, please call the HRGIM help desk at ext. 3-5666.

Please make your electronic pledge no later than Friday, August 17.

APPRECIATION LUNCH
Rounding out this week's Days of Caring is an Appreciation Event today in A=
ntioch Park from 11:30 a.m. - 1:00 p.m.  Come celebrate the success of Days=
 of Caring, enjoy a free Chic-Fil-A lunch and watch a team of your coworker=
s compete against the other business units by creating building block struc=
tures that exemplify Enron attributes: Smart, Innovative, Bold, Ambitious, =
and United.  Jackie Martin, President of the United Way of the Texas Gulf C=
oast, will join us in judging the structures. If you bring down the buildin=
g blocks that were on your chair on Monday and donate them to our 2001 Adop=
ted Agencies, you will be entered in a drawing for two free round-trip airl=
ine tickets anywhere in the U.S.


BUSINESS HIGHLIGHTS

Enron Industrial Markets
Enron Industrial Markets announced today that Ivan Boileau has been named g=
eneral manager of Garden State Paper, its recycled newsprint mill in Garfie=
ld, New Jersey.  Ivan was formerly the assistant general manager of Enron's=
 Papiers Stadacona paper mill in Quebec City, where he was responsible for =
pulping, paper machine operations and maintenance. Under Ivan's leadership,=
 Garden State Paper is expected to increase annual production, as well as p=
roduce higher quality recycled newsprint at a lower cost.
Enron acquired Garden State Paper in July 2000 and Papiers Stadacona in Apr=
il 2001. The acquisition of both mills now positions Enron as the seventh l=
argest producer of newsprint in North America. Enron began offering various=
 financial hedges to the Forest Products industry in 1997, and today is the=
 world's leading provider of customized financial risk management services =
to both buyers and sellers of pulp, paper and wood products. In addition, E=
nron provides capital services, inventory management and long-term fixed pr=
icing contracts for physical product for up to 10 years.

EIM Trading
Enron Industrial Markets Middle Office has a busy six months ahead of it as=
 it works to ensure that the infrastructure is in place to handle the treme=
ndous growth in the Industrial Markets Trading.  Key milestones will be the=
 continuous improvement of customer service (both internal and external), t=
he development/retention of team members, and the implementation of the fir=
st phase of new systems focused on electronic trade capture, robust physica=
l order management, and settlements.  These milestones will be key to a str=
ong finish in 2001 and being in a good position for the growth expected in =
2002.


Enron Global Markets
Got Sushi??=20
Enron Global Markets is seeking to fill a key trading position in our Japan=
 office.  We are currently interviewing internal candidates to take the lea=
d on our commodity trading activities in Tokyo, Japan.  Tokyo is an excelle=
nt arena for us to apply our business model and this is an opportunity for =
you to add international value by applying your expertise in Enron commodit=
y trading activities.  The initial commodities that will be traded on the T=
okyo Commodity Exchange (TOCOM) are gasoline, kerosene, naphtha, LPG and cr=
ude.  However, experience specific to these commodities and/or speaking Jap=
anese are not requirements for the position.  If you are interested in this=
 unique international opportunity, visit the TOCOM website at www.tocom.or.=
jp. and contact Johnny Palmer of Enron Global Markets' recruiting at (713) =
853-4017 or johnny.palmer@enron.com

EGM Fundamentals
OPEC Producer Profiles
Columbia University summer associates Majed Limam and Noha Kasrawi have pre=
pared a birds-eye view of individual OPEC producers and the types of crude =
they export. Working from public and proprietary information sources, they =
offer readers background information, a description of each player's role w=
ithin OPEC, the structure of its oil industry, breakdown of its exports and=
 synopsis of upstream, midstream and downstream sectors. Each country profi=
le contains hyperlinks to crude assays and information on the marketing of =
their crudes, as well as maps. The results of their research can be viewed =
by selecting in-house analysis on the EGM Fundamentals webs site at: <http:=
//egmfundy.corp.enron.com/crude/>

Tracking Wholesale Gasoline
If gasoline rack prices are on your mind, a recently completed database tha=
t allows users to track gasoline 87 rack prices in eleven US cities, for bo=
th branded and unbranded gasoline, should be just the thing. The final prod=
uct, developed by EGM Fundy staffer Jim Cole and Columbia University summer=
 associate Majed Limam, gives a theoretical value for gasoline netback pric=
es by subtracting tariffs and transportation costs from the average rack pr=
ice for each city.  The output is displayed in graphical form in excel, but=
 the major calculations and sorting occur in an Access database. The comple=
te database is being updated continuously and will reside on the EGM Fundam=
entals web site in the nearest future.=20

Worldwide Petchem Plant Shutdowns, Startups
The EGM Fundamentals Petchems team has compiled a master list of petrochemi=
cal plant shutdowns and startups worldwide from a wide variety of sources. =
This information, sorted by region and compound, allows users to confirm or=
 anticipate changes in supplies impacting specific petchem markets. Updated=
 weekly, the full report is available under In-house Analysis at: <http://e=
gmfundy.corp.enron.com/petchems/>


IN THE NEWS

Deregulation Pilot Launch Successful: The Texas Electricity Deregulation Pr=
ogram pilot officially launched August 1 without a hitch. The pilot program=
, which hinged on the conversion of the Electric Reliability Council of Tex=
as' (ERCOT) 10 control areas to a single control room in Austin, was delaye=
d for two months due to computer problems. ERCOT is slowly transferring cus=
tomers to their new providers and expect to complete the conversion by the =
end of August. The Texas electricity market will be fully deregulated on Ja=
nuary 1, 2002. =20


WELCOME
New Hires
EGM  - Brent Birdsong, Lyla Hall
EIM - Kristen Blackwelder, Thomas Edgington, Stuart Kinder, Paul Condit, Ed=
 Rollins, Rodney O'Rourke
ENA - Jorge Cruz, Greg McCracken, Sarah Zardowsky


NUGGETS & NOTES

EnronOnline Figures
Below are the latest figures for EnronOnline as of August 7

*  Total Life to Date Transactions > 1,295,000
*  Life to Date Notional Value of Transactions > $ 750 billion


Travel Tips Wrap-up
Enron's Travel Web site=09=09=09travel.enron.com

Travel Agency in the Park
=09Phone number=09=09=09713-860-1100

=09After hours numbers

=09Monday - Friday 6 PM- 10PM=09713-650-1333 or 1-800-962-0248 (option 3)
=09Saturday-Sunday 9AM - 9PM=09

=09Emergency After Hours=09=091-800-448-7150  (member 45625775)

=09Web site=09=09=09www.travelpark.com <http://www.travelpark.com>

Rental Car Contract Numbers
=09Alamo=09=09=09=09  143974
=09National=09=09=09=095000838

Enron Toll Free Number=09=09=091-800-97-ENRON

Enron Corporate Calling Card=09=091-800-96-ENRON


Look Out Rockets, Here Come the Lot Lizards!
The Downtown Met has a new basketball league.  On Monday nights at the Met =
you can watch the slam dunk action.  There are two Enron teams and 8 from o=
ther companies.  One of the teams is Enron Freight Markets Team (secretly k=
nown as the "Lot Lizards") They are undefeated at 2 and 0.  Some of the pla=
yers on the Lot Lizard team are Mike Keyser, Jason Beckstead (captain), Bry=
an Robins, Mike Perun, Pat Twohy, Mike Arendes, Ken Jett, John Ashman, Jon =
Sarley, and Peter Weinberger.  Come cheer on the Lot Lizards as they contin=
ue to hit shots at the buzzer and reverse ally-oops.  These guys are great!


NEWS FROM THE GLOBAL FLASH

Gas TPA agreement signed in Spain
Some very good news just in from Spain.  Last week, Enron Espa?a Generaci?n=
 and Enagas reached a long-term agreement whereby Enagas will provide Enron=
 Espa?a Generaci?n with regasification and transport services of natural ga=
s of approximately 1,7bcm annually between Huelva and our planned combined =
cycle gas turbine plant at Arcos de la Frontera (Cadiz).  The services will=
 begin in 2004, a date that coincides with our planned schedule for commenc=
ement of operations for the plant.  Well done to all the team.

Enron launches derivatives for three new tanker freight routes in shipping =
market
Enron's tanker freight team has this past week increased their derivatives =
portfolio (freight futures or 'swaps' of monthly contracts up to four month=
s out) for three new tanker freight routes on EnronOnline. The tanker freig=
ht derivatives will be benchmarked against published indices for the three =
routes on the 'Baltic International' (BITRA) and International Independent =
Tanker Rate Assessment (IITRA) exchanges to help ship-owners (including oil=
 companies), charterers, traders and even banks with exposure to the shippi=
ng market, mitigate the volatility of the freight element of tanker voyages=
 traveling from Singapore to Japan (30,000 tonnes), the Caribbean to the US=
 Gulf (70,000 tonnes) and Rotterdam to New York (33,000 tonnes).  Derivativ=
es for the three routes will be managed out of the Singapore, Houston and L=
ondon offices respectively.  "Volatility of the tanker freight market has b=
een as high as 62% on some routes," explains Scott Moncrieff, Enron's direc=
tor of Liquids Freight Trading, based in London.  "This has increased the i=
mportance of freight in relative terms on most tanker routes"=20

"In nine months we have already traded more than 3 million tonnes of paper =
freight, with a value of more than USD 14 million on the existing 80,000 to=
nne Sullom Voe (North Sea) to Willemshaven (Germany) route, and we expect t=
o achieve similar levels of interest on our three new routes.  The tanker f=
reight market is estimated to be worth more than USD 15 billion annually, a=
nd with increased liquidity being brought to the sector because of more pla=
yers entering the market there's plenty of opportunity for us to build our =
business."

The tanker freight team is also very heavily involved in the physical chart=
ering of tanker vessels in Europe, The Americas, Arabian Gulf, Mediterranea=
n, Far East and US West Coast, utilizing both the spot shipping market and =
Enron-controlled 'time-charter' vessels.

Nordic Pre-Pay Deal
The Nordic origination team has closed their first municipality power pre-p=
ay deal in the last week. This is the first deal to be completed based on a=
 financing structure that Enron Nordic Energy negotiated with Den Norske Ba=
nk earlier this summer. The deal is an important reference for municipaliti=
es that are interested in raising cash without selling their ownership in l=
ocal power companies.

Steel Products
In March 2001 the European Steel Group commenced operations as an expansion=
 of the successful effort underway in North America.  The group offers both=
 physical and financial commodity grade steel products and serves as the on=
ly market-maker for a commodity market that is larger than that of crude oi=
l.  The mission is to introduce the concept of indexation and financial con=
tract to an industry where price transparency and risk management are virtu=
ally non-existent.  Physical and financial contracts for hot rolled and col=
d rolled steel are currently on offer via EnronOnline.  Interest from Europ=
ean producers and end-users is keen with the first financial transactions e=
xpected to close by the end of Q3.=20

Since the team's inception they have successfully completed transactions wi=
th counterparties in Kazakhstan, Egypt, and China amounting to nearly 50,00=
0 metric tonnes of steel. =20

Forest Products
Enron's European Forest Products group is now trading physical market pulp =
to complement the financial derivatives products already offered for the la=
st 2 years, increasing the volume under contract by 30%.=20

Over the past six months, the group has recruited physical pulp traders to =
handle its day-to-day physical pulp trading business.  "We have sourced lon=
g-term physical supplies of "market pulp" from around the world which will =
complement the financial derivative products we have already been offering,=
" explains Martin Holmes, Director of Enron's European Forest Product Opera=
tions.

By trading both physical and financial contracts, Enron is pioneering more =
creative pricing in the industry by offering physical and financial cash an=
d forward prices, as well as being the only market maker to quote longer da=
ted swaps.

The group is also actively looking at structured finance opportunities incl=
uding a number of inventory deals. These opportunities have arisen as the b=
enchmark pulp price for Northern Bleached Softwood Kraft (NBSK) has fallen =
by 45% over the past 6 months, leaving producers with high levels of pulp i=
nventory in warehouses.

On 2nd July, the group launched the first standard contract for Bleached Eu=
calyptus (BEK) pulp on EnronOnline, and is actively marketing to industry b=
rokers to adopt the contract as the benchmark index for pricing. The contra=
ct meets the commodity specifications of the BEK contract on the London Pul=
pex futures exchange, where Enron is the only market maker for all pulp fut=
ures contracts offered.



Got a Great Idea for the EnTouch?   Do you have great news you want everyon=
e in EWS to know about? Something interesting going on in power and gas mar=
kets? Or in industrial or global markets?  Send your ideas to Kathie Grabst=
ald via email or call x 3-9610.


LEGAL STUFF
The information contained in this newsletter is confidential and proprietar=
y to Enron Corp. and its subsidiaries.  It is intended for internal use onl=
y and should not be disclosed.




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