Constellation signs Freeport LNG capacity deal

Monday, 23 April 2007

Under the agreement, Baltimore, Maryland-based Constellation Energy will have access to regasification capacity at the Freeport LNG reception terminal, which is located on Quintana Island, near Freeport, Texas.

Constellation, a leading US supplier of power to large commercial and industrial customers, has signed a deal to deliver LNG cargoes into the Freeport facility through September 2009.

The company said its wholesale gas marketing business has an extensive downstream portfolio that will allow it to maximize the value of LNG imported into Texas.

"This transaction will allow us to supplement our domestic gas supply portfolio with LNG production from around the world," said Felix Dawson, co-president of Constellation Energy Commodities.

"The Freeport LNG facility will be the first new land-based regasification terminal built in the United States in more than 25 years. The combination of access to liquid markets and storage from the Freeport LNG facility makes this an attractive option for Constellation," Dawson added.

The Freeport LNG facility is under construction and expected to be ready for commercial operations at the end of 2007.

The effective date of Constellation's agreement will coincide with the start of commercial operations at the terminal. The terminal's initial phase will have a vaporization capacity of 1.75 billion cubic feet per day.