Dow Chemical Subsidiary Purchases Interest in Freeport LNG Development, LP
December 13, 2004 12:02 PM US Eastern Timezone
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HOUSTON--(BUSINESS WIRE)--Dec. 13, 2004--Texas LNG Holdings, LLC, a wholly-owned subsidiary of The Dow Chemical Company, today announced that it has purchased a 15 percent ownership interest in Freeport LNG Development, LP. This transaction closed on Friday, Dec. 10, 2004. Texas LNG Holdings acquired the interest from Freeport LNG Investments, LLLP.
"We are pleased that this Dow subsidiary has made this investment and is now one of the owners of the Freeport LNG project," said Michael S. Smith, CEO of Freeport LNG Development, LP. "As a major customer of the terminal, Dow has been tremendously important to the success of the Freeport LNG project. We believe that their subsidiary's participation as an equity owner reflects continued support and adds a valuable new dimension to the project."
In response to the growing demand for natural gas in the U.S., Freeport LNG Development, LP is currently implementing a project to permit, design and construct a liquefied natural gas (LNG) receiving terminal on Quintana Island, near Freeport, Texas.
"We believe very strongly in this project, and we have the greatest respect for Michael Smith and his Freeport LNG team." said B.J. Sumrall Jr., President of Texas LNG Holdings, LLC. "Our nation clearly needs a greater supply of natural gas to meet demand. LNG is an essential part of the answer to this problem."
Freeport LNG Development LP is a Delaware limited partnership whose general partner, Freeport LNG-GP, Inc., is owned by Michael S. Smith (50 percent) and ConocoPhillips (50 percent). The partnership's limited partners are now Freeport LNG Investments, LLLP (45 percent); Cheniere Energy (30 percent); Texas LNG Holdings, LLC, a subsidiary of The Dow Chemical Company (15 percent), and Contango Oil & Gas (10 percent).
Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $33 billion, Dow serves customers in more than 180 countries and a wide range of markets that are vital to human progress, including food, building and construction, among others. Committed to the principles of sustainable development, Dow and its approximately 46,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" mean The Dow Chemical Company and its consolidated subsidiaries, unless otherwise expressly noted. More information about Dow can be found at www.dow.com.
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