The Dow Chemical Company (Dow) and EDF Trading announce a four-year agreement to share liquefied natural gas (LNG) regasification capacity in order to secure LNG cargoes destined for the European and U.S. markets.

The agreement brings together two significant buyers in the wholesale natural gas market who are active in different geographic locations. EDF Trading will provide Dow with access to European LNG regasification terminals. Dow will provide EDF Trading with access to its regasification capacity at the Freeport LNG terminal in Texas. The Freeport terminal is still in the commissioning process, but is expected to be ready for commercial operation soon. Both parties will be able to compete more effectively in securing LNG supply by offering producers the opportunity to sell LNG based on the higher of U.S. or European natural gas prices.