FERC on Tuesday gave Freeport LNG Development LP the green light to begin construction of an agency-approved liquefied natural gas (LNG) import terminal and associated gas pipeline facilities on Quintana Island near Freeport, TX. The Commission has given the company a five-year construction window to build the project. The sendout capacity of the facility will be up to 1.5 Bcf/d. Two storage tanks each will have the capacity to hold 3.5 Bcf. The project also will include a 10-mile, 36-inch diameter pipeline extending from the import terminal to a proposed meter station at Stratton Ridge storage hub in Brazoria County, TX. The targeted in-service date is June 2009. Dow Chemical 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.

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