Dow Chemical, Freeport LNG agree on Gulf Coast LNG terminal

By OGJ editors

HOUSTON, June 20 -- Dow Chemical Co. and Freeport LNG Development LP (Freeport LNG) have reached an agreement whereby Dow will have the right to use Freeport LNG's proposed LNG receiving terminal for 20 years.

Freeport LNG plans to build the terminal on its Quintana Island site southeast of Freeport in Brazoria County, Tex. It would be one of the first LNG receiving terminals to be approved and built in the continental US in more than 20 years.

Under the agreement, Dow will have processing rights for 500 MMcfd (3.6 million tonnes/yea) of non-US sourced LNG beginning in 2007. The LNG would be used partially to fuel Dow's Gulf Coast petrochemical facilities, which consume nearly 700 MMcfd of natural gas. The remaining gas will be marketed to other industrial consumers and to key Gulf Coast natural gas hubs in Texas.

Freeport LNG plans to permit, design, and construct the LNG terminal with a storage capacity of 6.9 bcf and a vaporization send-out rate of 1.5 bcfd. The natural gas would be transported through a 9.4-mile pipeline to Stratton Ridge, Tex., which is a major point of interconnection for a number of Texas intrastate systems.

"The Quintana Island terminal is well located to serve Dow's Freeport operations, which is essentially adjacent to the terminal," said B.J. "Jody" Sumrall, Dow's business manager for LNG & Texas Gas. "The US Gulf Coast region is very important to us. For Dow to continue to grow here, we must have access to a globally competitive supply of natural gas and natural gas liquids that we use to make our products."

The agreement marks an important milestone toward the realization of the receiving terminal initiative, said Freeport LNG Chief Executive Michael S. Smith. "Freeport LNG has completed all major state and federal governmental filings necessary to secure environmental and technical approval for this project, and the initial Federal Energy Regulatory Committee public scoping meeting was well received by the Brazosport-area business and community groups."

The next key milestones, he said, is for Freeport LNG to obtain the necessary governmental approvals and enter into an engineering, procurement, and construction agreement for the terminal, and for Dow and Freeport LNG to complete a final terminal use agreement.

Freeport LNG is a Delaware limited partnership whose sole general partner and 60% limited partner are owned and controlled by Michael S. Smith. The partnership's other limited partners are Cheniere LNG Inc.30%, and Contango Oil & Gas Co.10%.

Related Articles

Dow Chemical unit buys interest in Texas LNG project

12/16/2004 Dow Chemical Co. subsidiary Texas LNG Holdings LLC has purchased a 15% ownership interest in Freeport LNG Development LP from Freeport LNG Investme...

Edge Petroleum to acquire South Texas properties from Contango

10/18/2004 Edge Petroleum Corp. agreed to acquire oil and natural gas properties in South Texas from Contango Oil & Gas Co. for $50 million.

OGJ Newsletter

06/28/2004 Energy prices seesawed daily early last week, with the new near-month August contract for US light, sweet crudes falling 68¢ to $37.57/bbl Jun...

FERC approves Freeport LNG receiving terminal

06/21/2004 The US Federal Energy Regulatory Commission has authorized Freeport LNG Development LP to site, construct, and operate an LNG receiving terminal at...

ConocoPhillips joins Freeport LNG terminal project partners

12/23/2003 ConocoPhillips has agreed to join with Freeport LNG Development LP and assume a 50% general-partnership managing interest in the proposed LNG recei...

IEA projects more oil demand growth

08/18/2003 The International Energy Agency's latest Oil Market Report includes an upward revision to some historical demand figures and a corresponding increa...

Freeport LNG taps Technip for Texas LNG terminal FEED contract

08/12/2003 Freeport LNG Development LP has awarded a contract to Technip unit Technip USA Corp., Houston, for the front-end engineering design (FEED) for its ...

Finance/Companies news briefs, Jan. 24

01/24/2001 TotalFinaElf � TransCanada PipeLines � Ocean Energy � Texoil � Rocky Mountain Gas � J. Ray McDermott � Bay � Agip Energy (Australia) � QRL Liquidat...

Finance/Companies news briefs, Aug. 25

08/25/2000 Contango Oil & Gas � Republic Exploration � Roper Industries � RAO Gazprom � Lukoil � ONEOK � Southwest Gas � Premcor Refining Group � Greka Energy...
White Papers

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...
Available Webcasts


Prevention, Detection and Mitigation of pipeline leaks in the modern world

When Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST



On Demand

Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected