ConocoPhillips Finalizes Agreement with Freeport LNG

ConocoPhillips announced the finalization of its transaction with Freeport LNG Development, L.P. to participate in a proposed liquefied natural gas (LNG) receiving terminal in Quintana, Brazoria County, Texas.

ConocoPhillips has acquired 1 billion cubic feet (BCF) per day of regasification capacity in the terminal, has obtained a 50 percent interest in the general partner managing the venture and will provide substantial construction funding to the venture.

The terminal is designed with storage capacity of nearly 7 BCF and send-out capacity of 1.5 BCF per day. Natural gas will be transported through a 9.4-mile pipeline to Stratton Ridge, Texas, which is a major point of interconnection with the Texas intrastate gas pipeline system.

Approval for the facility was received from the Federal Energy Regulatory Commission on June 18. 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. Construction is scheduled to begin in the fourth quarter, with commercial startup planned for the second half of 2007.

“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,” said Sig Cornelius, ConocoPhillips president, Global Gas. “It is a strong addition to the company’s growing LNG portfolio."

Freeport LNG Development, L.P. is a Delaware limited partnership. The general partner is owned 50 percent by Michael S. Smith and 50 percent by ConocoPhillips. For more information, go to www.freeportlng.com.