News report;
Company Press Release
Penn Octane Corporation Announces Strategic Alliance
With Auto Tanques Nieto S.A. DE C.V. Resulting in
Record Shipments of LPG for December 1997
REDWOOD CITY, Calif.--(BUSINESS WIRE)--Dec. 30, 1997--Penn Octane Corp.
(NASDAQ SmallCap:POCC - news) announced today the recently completed strategic alliance
with Auto Tanques Nieto S.A. DE C.V, one of the largest transportation companies of liquid
gases in Mexico, to provide the company with increased delivery capacity of LPG into Mexico
from the company's terminal in Brownsville, Texas.
Auto Tanques Nieto is also a major retailer of liquid gases within Mexico.
As a result of this alliance and the additional transportation capacity, Penn Octane reported that
sales of LPG for the month of December 1997, based on results through Dec. 28, 1997, are
projected to be in excess of 9 million gallons, the largest volume of LPG shipped in the company's
history.
The company is currently estimating that volume for the month of January 1998 could be as much
as 12 million gallons. Historical volumes shipped for December 1996 and January 1997 were
approximately 7.4 million gallons and 8 million gallons, respectively.
Penn Octane is a leading supplier of liquefied petroleum gas to Mexico and propylene to the
petrochemical industry in Texas. Penn Octane operates a 132-mile, six-inch pipeline from a
pipeline in Kleberg County, Texas to its terminal in Brownsville, Texas, which acts as a
trans-shipment point for delivery to Mexico.
In addition, the company owns and operates PennWilson CNG, Inc., located in Santa Fe
Springs, Calif., a leader in compressed natural gas station design, engineering, manufacturing and
safety. |
