By OGJ editors
HOUSTON, Oct. 18 -- Dominion Cove Point LNG LP and Statoil ASA began construction Oct. 5 on facilities to almost double the capacity of Dominion Cove Point LNG terminal in southern Maryland. Capacity is being increased to 1.8 bcfd of gas from 1 bcfd and storage capacity to 14.6 bcf from 7.8 bcf. The terminal is at Lusby on Chesapeake Bay south of Baltimore.
Dominion will add two storage tanks to the five existing tanks, additional vaporizers at the plant, and two electric generator units to the existing three units.
The project also includes expanding the Dominion Transmission Inc. gas pipeline delivery system. Dominion would build a 47.8-mile, 36-in. pipeline duplicating the existing 36-in. line from Cove Point to Marshall Hall Gate in Calvert, Prince George's, and Charles counties, Md., to deliver more gas to interstate pipeline connections in Virginia.
It also will add storage capacity in Pennsylvania along with two compressor stations, a pipeline in Greene County, Pa., two sections of pipeline in Potter County, and an 81-mile, 24-in. transmission line from its Perulack compressor station in Juniata County to Dominion's South Point market hub, other interstate pipelines, and major gas storage fields at Leidy in Clinton County, Pa. Leidy is a major storage center for gas used in the US Northeast.
Dominion and a subsidiary of Statoil this summer signed 20-year service agreements for the plant expansion and increased pipeline capacity in Maryland and Pennsylvania. Statoil will provide 100% of the LNG for Cove Point.
The service agreements will begin when the expansion is activated, Dominion said. Work is scheduled for completion in fall 2008.
