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

Quicksilver Canada gets LNG export approval

07/02/2015 Quicksilver Resources Canada Inc. has received approval from the National Energy Board of Canada to export 20 million tonnes/year of LNG from a pos...

Puma Energy completes purchase of Murco’s UK refinery, terminals

07/02/2015 Singapore-based Puma Energy Group Pte. has completed its purchase of UK midstream and downstream assets from Murco Petroleum Ltd., a subsidiary of ...

API to issue recommended practice to address pipeline safety

07/01/2015 The American Petroleum Institute expects to issue a new recommended practice in another few weeks that addresses pipeline safety issues, but the tr...

SIBUR plans MTBE expansion at Togliattikauchuk

07/01/2015 Russian conglomerate OAO SIBUR Holding, Moscow, has started preparatory work for a project designed to expand production capacity for methyl tertia...

Woodside-led Browse FLNG venture enters FEED phase

07/01/2015 The Woodside Petroleum Ltd.-led Browse LNG joint venture has entered the front-end engineering and design phase for a floating LNG (FLNG) developme...

OxyChem-Mexichem JV lets contract for ethylene storage

06/30/2015 Ingleside Ethylene LLC, a 50-50 joint venture of Occidental Chemical Corp. (OxyChem) and Mexichem SAB de CV (Mexichem), has let a contract to CB&am...

Lytle named to Canada’s National Energy Board

06/30/2015

Murray Lytle has been appointed as a full-time member of Canada’s National Energy Board for a term of 7 years, effective July 6.

RIL’s Jamnagar refinery due maintenance

06/29/2015 Reliance Industries Ltd. (RIL), Mumbai, is planning to shut down a crude unit for scheduled maintenance at its 1.24 million-b/d Jamnagar refining a...

IOCL lets contract for LNG storage tanks for Indian terminal

06/29/2015 Indian Oil Corp. Ltd. (IOCL) has let a contract to Mitsubishi Heavy Industries Ltd. (MHI) for the engineering, procurement, and construction of two...
White Papers

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

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
Available Webcasts


The Resilient Oilfield in the Internet of Things World

When Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.

register:WEBCAST



On Demand

Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors

register:WEBCAST


Driving Growth and Efficiency with Deep Insights into Operational Data

Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

register:WEBCAST


OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

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