Houston Natural Gas Corporation (HNG) was an American gas utility headquartered in Houston, Texas, United States. The company was acquired by InterNorth Inc. in 1985, with HNG executives taking top positions at InterNorth. Following the transaction, InterNorth was renamed Enron Corporation, and the company headquarters was moved from InterNorth's base in Omaha to the former HNG offices in Houston. The company is notable for former CEO Kenneth Lay who became CEO of the newly formed Enron.
History
HNG was founded in 1940 as a company to sell the gas produced by the Houston Pipe Line Company, after negotiations with Houston Gas and Fuel fell through.[2] In 1956 HNG acquired the Houston Pipe Line Company and its assets for $36 million.[2] At the time, HPL owned 761 miles of transmission lines crossing the Texas Gulf Coast and had been HNG's principal supplier since its founding.
In 1963 HNG acquired the Valley Gas Production Company and its pipelines, with the president, Robert R. Herring, joining the company as vice-president. He became president of the company in 1967, and chairman of the board in 1973.[3]