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Reliant Inks $250 M Gas Contract with Huntsman

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 service.

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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