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Dow and Freeport LNG Development Reach LNG Terminal Use Agreement


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The agreement is for up to 500 million cubic feet per day of throughput capacity at Freeport LNG's proposed liquefied natural gas receiving terminal located in Quintana, Texas, U.S.A.

Under the terms of the agreement, Dow has made a firm commitment to reserve throughput capacity for 1.8 million tons of LNG per year (250 mmcf/d), and has until August 31, 2004 to exercise an option on the remaining 250 mmcf/d.

A portion of the anticipated LNG supply would be used to partially satisfy Dow's demand for natural gas at its petrochemical facilities located along the Texas Gulf Coast. Dow facilities in Texas and Louisiana consume nearly 600 million cubic feet per day of natural gas. Portions of the natural gas resulting from the LNG supply will be marketed to other industrial consumers and to key Gulf Coast natural gas hubs in Texas.

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