US Dow will not invest in Freeport LNG export project

21 May 2013 21:01  [Source: ICIS news]

NEW YORK (ICIS)--US-based Dow Chemical will not take part in Freeport LNG’s liquefied natural gas (LNG) export project, a spokesperson said on Tuesday.
 
The US Department of Energy (DOE) announced on 17 May that it granted Freeport LNG conditional authorisation to export LNG to non-FTA (free trade agreement) countries from a terminal on Quintana Island, Texas.

Dow currently has a 15% stake in Freeport LNG’s import terminal but will not invest in the export project, noted Dow spokesperson Nancy Lamb.

“Dow is not involved in the Freeport LNG export application, and we are not investing money in the export venture,” said Lamb.

Dow would not comment on what it plans to do with its 15% stake in the import terminal.

“Dow is a limited partner in the Freeport LNG import terminal, and as a limited partner we are not consulted by the general partner on the day-to-day operations of Freeport LNG,” she added.

The general partner is Freeport LNG-GP, which is 50%-owned by US-based energy company ConocoPhillips with the other 50% owned by Michael Smith, chairman and CEO of Freeport LNG.

“Dow invested in Freeport LNG’s import terminal in 2004 when experts from the industry all agreed that the US would not be able to access natural gas to support domestic demand, and more specifically, Dow’s direct use in existing manufacturing sites in Texas,” noted Lamb.

Freeport LNG’s import terminal started commercial operations in June 2008, but with the “sea change” in US natural gas supplies from shale formations since then, the company will focus on natural gas liquefaction and LNG exports, it said on its website.
 
Should the Freeport LNG’s Quintana Island facility pass an environmental review and receive regulatory approval, the terminal is conditionally authorised to export 1.4 billion cubic feet (bcf)/day of LNG for 20 years, the DOE said in a press release.


 


By: Joseph Chang
+1 713 525 2653



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