Reliant Inks $250 M Gas Contract with Huntsman
Huntsman Corp., a Texas-based chemical company with $5 billion
in revenues, selected Reliant Energy to supply gas to 10
manufacturing facilities for $250 million. For competitive reasons,
Reliant did not disclose the length of the contract or how much gas
will be supplied. It did say the contract has already gone into
The deal will account for 98% of Huntsman's domestic gas
consumption and it makes the chemical company Reliant's largest
natural gas client. Reliant will use five intrastate pipelines to
deliver gas to the 10 plants, which are spread across the state.
"We think this is about as big a deal as a gas supply deal
gets," said Sandy Fruhman. "We are talking about a huge amount of
money for a contract which is under five years in length."
Reliant pointed to its long-lasting relationship with Huntsman
as the major reason for the agreement. Reliant and Huntsman have
worked together since 1971.
Huntsman Corp. manufactures basic products for the chemical,
plastics, detergent, personal care, rubber and packaging
industries. Fruhman said the supply deal represents extensions of
old contracts and the start of service to Huntsman's new
manufacturing facility in Odessa, TX.
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