Dominion Energy has welcomed the Federal Energy Regulatory Commission’s final approval to site, construct, and operate the Cove Point LNG liquefaction and export project.
“We are pleased to receive this final approval that allows us to start constructing this important project that offers significant economic, environmental and geopolitical benefits,” said Diane Leopold, President of Dominion Energy. “This order is based on more than two years of thorough, exhaustive analysis by FERC along with numerous other federal and state agencies. It also reflects a robust public input process. Dominion is dedicated to constructing a safe, secure, environmentally compatible and reliable export facility.”
Dominion must review and accept the order. Upon completion of that review, the company expects to file an implementation plan describing how it will comply with the conditions outlined in the order.
Jobs and revenue
The construction of the export project, which is estimated to cost between US$ 3.4 billion and US$ 3.8 billion, will create thousands of construction jobs, 75 permanent jobs and an additional US$ 40 million in annual tax revenue to Calvert County. Other economic benefits include millions of dollars of new revenues for Maryland and the federal government as well as a reduction in the nation’s trade deficit by billions of dollars annually.
Leopold added: “Cove Point has been a good neighbor to the region and to the Chesapeake Bay for almost four decades and we expect that record to continue. Initially, Cove Point helped the United States overcome what was then an energy shortage. Now that our nation is developing a burgeoning surplus of natural gas, Cove Point can help send a small portion of that surplus to allied nation’s looking for stable supplies of clean energy, supporting economic development and replacing coal as a fuel.”
LNG export projects
Cove Point is the fourth LNG export project to receive approval to site, construct and operate. It is the first such project on the US East Coast.
Dominion has fully subscribed the marketed capacity of the project with 20-year service agreements with ST Cove Point, Tokyo Gas and GAIL Global (USA) LNG.
IHI/Kiewit Cove Point, a joint venture between IHI E&C International Corporation and Kiewit Corporation is the engineering, procurement and construction contractor for the new liquefaction facilities.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquefaction/30092014/dominion-welcomes-ferc-approval-1498/