Williams, Tulsa, Tuesday applied to the Federal Energy Regulatory Commission to reactivate liquefied natural gas (LNG) import services at its Cove Point terminal in Lusby, Md.
The reactivation includes modifications to existing facilities and construction of new facilities. They include renovation and reactivation of the offshore pier and related facilities to accommodate unloading of LNG tankers, construction of a fifth storage tank capable of holding 850,000 bbl of LNG, and construction of a btu reduction system.
Gary Lauderdale, senior vice-president and general manager of Williams' Transco pipeline, said, "This project will allow significant volumes of competitively priced natural gas to be introduced from new supply sources to the Eastern Seaboard. There is clearly strong market demand for the reactivation of this terminal, as evidenced by the long-term binding precedent agreements that have been executed for 100% of the capacity created by the project.''
The firm LNG tanker discharging service is fully subscribed under 20-year binding precedent agreements for the 750 MMcfd of send out capacity offered in the open season. The total LNG storage capacity will increase to 7.8 billion cu ft from 5 billion cu ft as a result of the proposed expansion.
Reactivation of the existing facilities and the initial import service would begin Apr. 1, 2002 while the proposed in-service date for the fifth storage tank is Sept. 1, 2003. The total project is estimated to cost $103 million. Williams owns 100% of the property on which all of the proposed facilities will be constructed.
The Cove Point facility will become the largest of the four LNG import facilities in the US with a send-out capacity of 1 bcfd. The terminal operated from 1978 to 1980. It was partially reactivated in 1995 to provide natural gas peaking services. Williams purchased Cove Point LNG LP from affiliates of Columbia Energy Group in June 2000.