The US Department of Energy continues to review applications to export LNG. As of May 17, DOE reported that 26 terminal operators had applied to export nearly 30 bcfd of LNG to countries having a Free Trade Agreement with the US, and about 28.5 bcfd to non-FTA nations.
Dominion Cove Point LNG LLP is fourth in line. The Dominion Resources subsidiary hosted OGJ and other Washington oil and gas reporters at its Cove Point terminal in nearby Lusby, Md., on May 10. It was a welcome opportunity for reporters who normally cover policy issues to visit a working energy facility.
Cove Point remains a working facility despite its not having received any LNG imports since early 2013. LNG is circulated through its system to keep equipment in good working shape as Dominion, which acquired it in 2000, awaits DOE's decision. The terminal was built in the 1970s and received LNG from 1978 to 1980, and from 2003 until recently.
Dominion reported Apr. 1 that the plant fully subscribed its export capacity over 20 years to Pacific Summit Energy LLC, a US affiliate of Japanese trading company Sumitomo Corp., and GAIL Global (USA) LNG LLC, a US affiliate of GAIL (India) Ltd.
Sumitomo, in turn, has announced agreements with Tokyo Gas and Kansai Electric Power. GAIL is India's largest gas processing and distribution company, Dominion said.
It also awarded its engineering, procurement and construction contract for new liquefaction facilities to IHI/Kiewit Cove Point, a joint venture between IHI E&C International Corp. of Houston and Kiewit Corp. of Omaha, Neb., following completion of the front-end engineering and design.
Nearby shale plays
Dominion Cove Point also submitted a more than 12,000-page application for the $3.4-3.8 billion project to the US Federal Energy Regulatory Commission in early April. While the gas that would be liquefied there likely will come from several areas, the site is ideally situated to use gas from the Marcellus and Utica shales, officials noted.
The terminal in Chesapeake Bay is capable of handling vessels with 267 cu m of LNG capacity. The pier was expanded in 2011 to take Q-Max tankers.
Standing there, it's possible to see huge cargo ships coming to and from the Port of Baltimore outside an exclusion zone marked by buoys in the bay. The US Coast Guard and other authorities quickly intercept pleasure and small fishing boats which occasionally wander into it and escort them to safer waters.
Soon after being sworn in on May 21, US Sec. of Energy Ernest Munoz reportedly said he wants to examine LNG exports more closely.
Operators will be ready to move ahead once they receive the necessary approvals if Dominion's Cove Point facility represents their overall situation. Construction there could start in 2014 and go into service 3 years later, officials said.