By OGJ editors
HOUSTON, June 14 -- Statoil ASA has finalized a 20-year contract with Richmond, Va-based Dominion, giving Statoil access to increased processing and storage capacity that Dominion is planning for its Cove Point, Md., LNG terminal.
Statoil will more than quadruple its current 2.4 billion cu m/year, which is one third of the LNG processing facilities and storage at Cove Point. The BP Group and Royal Dutch/Shell Group also hold one third each (OGJ Online, Sept. 3, 2003).
During 2006-23, Statoil plans to deliver 2.4 billion cu m/year of LNG from its Snøhvit development in the Barents Sea. Until Snøhvit production begins, the group is buying LNG from producers in Algeria and Trinidad and Tobago (OGJ Online, Feb. 12, 2004).
Expansion plans call for increasing Cove Point's capacity to 1.8 bcfd from 1 bcfd and its storage capacity to 14.6 bcf from 7.8 bcf, both by 2008. Pending regulatory approval, construction of new LNG storage tanks is expected to take 3 years.
The project also includes associated pipeline and natural gas storage projects in Maryland and Pennsylvania. The new pipelines are expected to go into service by late 2008.