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Dominion celebrates Cove Point LNG construction

LNG Industry,

Dominion, together with its international business partners and the Maryland community, has celebrated the construction of the Dominion Cove Point LNG Liquefaction project.

Kenichiro Sasae, the Japanese ambassador to the US, and Maryland Governor Larry Hogan joined Dominion Chairman Thomas F. Farrell II at the ceremony, Other figures who attended included Diane Leopold, President, Dominion Energy; Kazuhiro Takeuchi, President and CEO, Sumitomo Corp. of Americas; Jayanta Sinha, President, GAIL Global USA; and Steven R. Weems, President, Calvert County Board of County Commissioners.

Milestone project

"Cove Point will supply critical American allies in India and Japan with much-needed natural gas that will help reduce global greenhouse gas emissions," said Farrell. "Although the doubters said it could not be done, in late 2017 our liquefier will be online, and ships will begin receiving LNG for export."

The Cove Point project is a US$3.4 billion - US$3.8 billion project that will create thousands of skilled construction jobs, 75 permanent jobs and an additional US$40 million in annual tax revenue to Calvert County. Construction-related activities started in October 2014 and operations are projected to begin in late 2017.

Export capacity

Dominion has fully subscribed the capacity of the project with 20-year service agreements with ST Cove Point, LLC, a joint venture of Sumitomo Corp. and Tokyo Gas Co. Ltd; and GAIL Global (USA) LNG LLC, a wholly owned subsidiary of GAIL (India) Ltd.

Cove Point will produce approximately 5.25 million metric tpy of LNG for the two customers. The LNG shipments from Cove Point are projected to reduce the US trade imbalance by at least US$2.8 billion, and possibly as much as US$7.1 billion, annually.

Adapted from press release by Katie Woodward

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