DoE Approves Cove Point LNG Export Terminal

October 2013, Vol. 240 No. 10

Dominion Resources has won approval from the federal Department of Energy to export LNG from the facility the company wants to add to an existing import terminal in Maryland, the fourth such project authorized by the agency.

The project, which may cost as much as $3.8 billion, was approved pending environmental reviews. Energy Department approval allows shipment of an average 777 MMcf/d as LNG.

Dominion still requires approval from the Federal Energy Regulatory Commission to start construction at the facility at Cove Point, on the shores of Chesapeake Bay. FERC will prepare the project’s environmental impact statement. “We have financing and we’re fully subscribed by customers for capacity,” Dominion spokesman Dan Donovan said. Final regulatory approval could come in the first quarter next year.

Cove Point gas is under contract for 20 years with affiliates of Tokyo-based Sumitomo Corp. and GAIL (India). Dominion hired IHI E&C International of Houston and Kiewit to build the complex. The DoE previously this year approved LNG exports from terminals at Lake Charles, La and Freeport’s facility at Quintana Island, TX though both still need FERC approval. The first LNG export terminal in the Lower 48 states is under construction at Sabine Pass, LA and is scheduled to start up in late 2015.

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