In a statement the company said, “ConocoPhillips has acquired 1 billion cubic feet (BCF) per day of regassification capacity in the terminal, has obtained a 50% interest in the general partner managing the venture and will provide substantial construction funding to the venture.”
“Approval for the facility was received from the Federal Energy Regulatory Commission on June 18, [with] receipt of all other necessary federal, state and local approvals is expected in the third quarter of this year.
“The current management of Freeport LNG will remain in place and will oversee the commercial activities of the partnership. ConocoPhillips will provide the leadership for the management of construction and operation of the facility,” added the company.
The terminal has a storage capacity of 7 BCF and is expected to pump out 1.5 BCF per day with transmission via a 9.4 mile pipeline to Stratton Ridge, Texas. Construction on the terminal is slated to begin in the fourth quarter of this year and commercial startup is planned for the second half of 2007.
According to ConocoPhillips President Global Gas, Sig Cornelius, “This project is a critical link for the development of one or more of several LNG projects under consideration by ConocoPhillips that will deliver clean natural gas to the United States’ growing market [and] is a strong addition to the company’s growing LNG portfolio.”
Freeport LNG Development LP is a Delaware registered limited partnership. The stake in the firm is 50-50 shares by ConocoPhillips and Michael S. Smith.
