FERC approves Cove Point LNG terminal reactivation

Oct. 12, 2001
The US Federal Energy Regulatory Commission granted permission to Williams Cos. Inc., Tulsa, to reactivate liquefied natural gas import facilities at its Cove Point LNG terminal in Lusby, Md. The previously announced plan includes modifications to existing facilities and construction of new facilities.

By the OGJ Online Staff

HOUSTON, Oct. 12 -- The US Federal Energy Regulatory Commission granted permission to Williams Cos. Inc., Tulsa, to reactivate liquefied natural gas import facilities at its Cove Point LNG terminal in Lusby, Md.

That terminal operated from 1978 to 1980 and was partially reactivated in 1995 to provide natural gas peaking services.

The latest reactivation plan includes modifications to existing facilities and construction of new facilities. That includes renovation and reactivation of the offshore pier and related facilities to accommodate unloading of LNG tankers, construction of a fifth storage tank, and construction of a btu reduction system (OGJ Online, Jan. 31, 2001).

Cove Point's storage capacity will increase to 7.8 bcf from 5 bcf because of the expansion.

FERC also authorized an interconnection with the Transco pipeline system.

"This project will play a significant role in serving the growing need for natural gas, particularly in the Mid-Atlantic and Northeast regions of Transco's system," said Gary Lauderdale, senior vice-president and general manager of Williams' Transco pipeline. "Cove Point can vaporize 1 bcfd, which provides enough energy for 3.5 million homes each day."

Reactivation of the import service is set for second quarter 2002, while the fifth storage tank should be in service in third quarter 2003.