8-K

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                     SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549
                                
                                
                                  Form 8-K
                                
                                
                               CURRENT REPORT
                                
                                
                   Pursuant To Section 13 or 15 (d) of the
                       Securities Exchange Act of 1934


Date of Report (Date of earliest event reported) August 16, 1996

                                
                                
                              KCS Energy, Inc.
           (Exact name of registrant as specified in its charter)
                                
                                

       Delaware                       1-11698                   22-2889587 
(State or other jurisdiction        (Commission               (IRS Employer
    of incorporation)              File Number)             Identification No.) 
                                
                                
379 Thornall Street, Edison, New Jersey                             08837
(Address of principal executive offices)                          (Zip Code)
                                
                                
                                (908) 632-1770
              Registrant's telephone number, including area code
                                
                                
                                NOT APPLICABLE
        (Former name or former address, if changed since last report.)
                                
                                

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Item 5.   Other Events.

     The Supreme Court of Texas has denied the petition of Tennessee Gas 
Pipeline Company (TGT) for rehearing of the court's opinion of April 18, 1996 in
TGT's take-or-pay contract litigation with KCS Energy, Inc.
     
     The press release issued by the registrant is attached as an exhibit.


Item 7.   FINANCIAL STATEMENTS AND EXHIBITS.

     (a ) None

     (b ) None

     (c ) Exhibits

     99   Press Release dated August 16, 1996.


                           SIGNATURES


     Pursuant to the requirements of the Securities Exchange Act of 1934, the 
Company has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                             KCS Energy, Inc.


                                          By: /s/ Henry A. Jurand          
                                              --------------------
                                                  Henry A. Jurand 
                                        Vice President, Chief Financial Officer 
                                                   and Secretary
                           


Dated:   August 20, 1996

EX-99

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            TEXAS SUPREME COURT RULES IN FAVOR OF KCS ENERGY, INC.
            ------------------------------------------------------

Edison, N.J. August 16, 1996 -- KCS Energy, Inc. (NYSE: KCS) announced that the
Texas Supreme Court has denied a request by Tennessee Gas Pipeline Company
(TGT) for another rehearing in its take-or-pay contract litigation with KCS,
following the court's opinion on April 18, 1996, affirming KCS's position on
all issues.  Under the contract, which runs through January 1999, TGT is
obligated to purchase natural gas production from the Bob West Field in south
Texas at a price currently in excess of $8.00 per Mcf.

     KCS Energy President and Chief Executive Officer James W. Christmas said,
"We are extremely please that we have finally come to the end of a very long
road and that we can now recover approximately $70 million that TGT has
withheld.  Before the supreme court's ruling, KCS had set a captial spending
program of $70 million for 1996.  With the final conclusion of this litigation,
we can proceed with plans for at least a 50% increase in capital spending for
the year."

     KCS is an independent energy company primarily engaged in the acquisition,
exploration, development and production of natural gas and crude oil.  The
Company also operates natural gas transportation and energy marketing and
services businesses.

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