By OGJ editors
HOUSTON, Mar. 9 -- Freeport LNG Development LP reported that it reached a 20 year terminal use agreement with Dow Chemical Co. for as much as 500 MMcfd of natural gas throughput capacity at Freeport LNG's proposed LNG receiving terminal at Quintana, southeast of Freeport in Brazoria County, Tex., (OGJ Online, June 20, 2003).
The agreement essentially means that the terminal's full capacity is now assigned. Dow has a firm commitment for 250 MMcfd with an option for the remaining 250 MMcfd. It would use part of the gas at its petrochemical plants along the Texas Gulf Coast, and will market the balance to other industrial users and to Gulf Coast natural gas hubs in Texas.
ConocoPhillips in late 2003 agreed to acquire 1 bcfd of regasification for its own use, joining with Freeport LNG in a 50% general-partnership managing interest. It also will provide "significant construction funding" and assume responsibility for construction management and facility operation (OGJ Online, Dec. 23, 2003).