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Under a 25-year deal, power generator Calpine will construct a 250-MW natural gas-fired cogeneration plant to supply Dow Chemical's Freeport, Texas, site with both electricity and steam. Calpine plans to begin delivery of steam in 2005 and electric power by 2006. About a year ago, Dow signed an agreement with Freeport LNG Development that is also aimed at managing energy costs. The 20-year deal, set to begin in 2007, secured storage rights for up to 500 million cu ft per day of liquified natural gas at a receiving terminal that Freeport LNG proposes to build adjacent to Dow's plant.
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