Called Al Taweelah A-2, the project includes a 710 megawatt, natural gas-fueled plant, and a water desalination plant capable of producing 50 million imperial gallons of water per day. The first unit is expected to generate electricity in 2000. The project will help fill the UAE's soaring demand for water and electric power.

CMS Energy already has built a reputation in the region for energy privatization with its success at the Jorf Lasfar power plant in Morocco. In its first full year of operating the plant, CMS Energy has improved availability, efficiency, coal unloading, environmental compliance and safety. Plant availability exceeded 91 percent. Construction to more than double generating capacity is ahead of schedule and under budget. When the new units enter commercial operation in 2000, the 1,356 megawatt Jorf Lasfar plant will provide about one-third of the country's total electricity supply.

CMS Energy also completed a strategically important pipeline in southern Tunisia. The 100-mile pipeline provides, for the first time, an economical way to market production from CMS Energy-operated natural gas and condensate fields in the Sahara Desert. With a capacity of 45 million cubic feet per day, the pipeline can handle more than three times current production levels. Late in 1998, CMS Energy successfully tested one new well in the region, and is drilling a second.

CMS Energy's principal oil production in Africa is from an area offshore of the Republic of Congo. The oil is pumped directly into a self-contained production vessel anchored at the site. The ship can store over 1 million barrels of oil, and offloads directly onto other ships for transportation to market. In 1998, Congo production totaled 1.5 million net barrels of oil equivalent, an increase of 2 percent; proved reserves totaled 18 million net barrels of oil equivalent.

CMS began building a $400 million methanol plant in Equatorial Guinea; it is expected to begin operation in 2001. The plant will produce 2,500 metric tons of methanol per day, using existing natural gas reserves that are part of the Alba field operated by CMS Energy. Net production from the Alba field in 1998 grew to 1 million barrels of oil equivalent and 200,000 barrels of liquefied petroleum gas.