Cove Point LNG LP, a subsidiary of Columbia Energy Group, has completed an open season for firm LNG tanker discharging service at its Cove Point LNG terminal in Lusby, Md., officials said. The limited partnership executed binding precedent agreements with Coral LNG Inc., El Paso Merchant Energy-Gas LP, and a subsidiary of BP Amoco PLC that fully subscribe the service offered in the open season. The three customers will enter into service agreements with Cove Point LNG upon receipt of appropriate regulatory approvals.
The new service initially will provide 4.25 bcf of storage capacity and 750,000 dekatherms/day of terminal and pipeline capacity to accommodate LNG imports by the three customers. The deal also provides for a 2.5 bcf vapor-equivalent storage capacity expansion of Cove Point.
Cove Point LNG officials said they expect to file an application with the Federal Energy Regulatory Commission in the near future for authorization to provide the LNG tanker discharging service, to recommission Cove Point's marine facilities, and to construct certain new facilities including the new LNG storage.
Last month, Columbia Energy agreed to sell its partnership interests in Cove Point LNG to Williams subsidiaries for $150 million (OGJ Online, May 3, 2000). That transaction should be completed by July, officials said.
