Freeport LNG Development LP is seeking FERC authorization to enlarge the size of its proposed sendout pipeline to accommodate future expansion of the liquefied natural gas (LNG) import terminal project on Quintana Island in Brazoria County, TX.

Specifically, the company wants the Federal Energy Regulatory Commission to amend the agency’s June 2004 order approving the project to increase the diameter of the proposed 10-mile pipeline to 42 inches from 36 inches in order to “respond to market demand for additional future capacity in the Freeport LNG import terminal and eliminate potential environment impacts associated with future expansion of the Freeport LNG sendout pipeline.” Freeport LNG has asked FERC to respond to its request by June 1.

The proposed pipeline would extend from the import terminal to a proposed meter station at Stratton Ridge storage hub in Brazoria County, where the company says there is adequate takeaway capacity on intrastate pipelines. At Stratton Ridge, Freeport said it is considering connections with five intrastate pipelines: Dow Pipeline Co., Kinder Morgan Texas Pipeline Co. LP, Houston Pipeline Co., Texas Utilities Pipeline Co. and Enterprise Pipe Line LP.

The pipeline facilities would deliver regasified natural gas from the proposed marine terminal, which would have initial sendout capacity of up to 1.5 Bcf/d. The terminal would have the capability to unload 200 ships per year.

The Freeport facility is expected to be constructed and placed into service in time for the 2006-2007 winter heating season. Dow Chemical already has signed a 20-year agreement to reserve 500 MMcf/d of the plant’s capacity. ConocoPhillips has entered into an agreement to fund the construction of the LNG facility (more than $500 million) in exchange for the remaining 1 Bcf/d of capacity, the company said.

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

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