FERC on Thursday gave preliminary environmental clearance to Freeport LNG Development LP’s proposed liquefied natural gas (LNG) import terminal and natural gas pipeline facilities on Quintana Island in Brazoria County, TX.

Construction of the project would have “limited adverse environmental impact” if recommended mitigating measures are used, the Commission staff said in its draft environmental impact statement (DEIS) on the proposed Freeport LNG facilities [CP03-75].

The $400 million project, which is one of four LNG receiving terminals that Freeport LNG plans to build along the Gulf Coast, would have a revaporization and sendout capacity of up to 1.5 Bcf/d. It calls for the construction of two LNG storage tanks, each with the capacity to hold 3.5 Bcf/d of gas, and nearly 10 miles of 36-inch diameter pipeline extending from the import terminal to a proposed meter station at the Stratton Ridge storage hub to allow adequate takeaway capacity by intrastate pipelines.

Other facilities in the project include LNG ship docking and unloading facilities with a protected single berth, two 26-inch diameter LNG transfer lines and six high-pressure LNG vaporizers.

The proposed Freeport facility is expected to begin providing gas to intrastate shippers at the Stratton Ridge meter station beginning tentatively in 2007. Dow Chemical already has signed a 20-year agreement to receive 500 MMcf/d starting in 2007.

Freeport LNG, which is 60% owned by privately held Freeport Investment, is also partially owned by two Houston-based independents, Cheniere Energy Inc., with a 30% interest, and Contango Oil & Gas Co., which has a 10% stake.

In addition to Brazoria County, options have been secured on three other sites to build LNG receiving terminals — Sabine Pass, LA, Corpus Christi, TX, and Brownsville.

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