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Dominion begins Cove Point LNG construction

LNG Industry,

Dominion has started construction activities at the Cove Point LNG export project, located in Maryland, US.

Commenting on the occasion, Diane Leopold, President of Dominion’s Energy business unit, said: "This is a historic event for Dominion, Maryland and the nation. The Cove Point LNG export project will help meet the world's need to move toward cleaner fuels. At the same time, it will provide significant economic benefits in terms of thousands of construction jobs, hundreds of millions of dollars in new tax revenues over the life of the facility, and an outlet for some of the nation's surplus natural gas supplies."

Regulatory process

The project underwent a comprehensive three-year regulatory review and approval process designed to ensure the project meets all safety, environmental and other requirements. Numerous federal, state and local agencies as well as thousands of citizens participated in the process. More than 60 approvals and permits were required before construction could begin.

Leopold continued: "The Cove Point facility has been on the western shore of the Chesapeake Bay as an LNG import terminal for nearly 40 years. While we are making a substantial investment to add export capabilities, we intend to keep unchanged our commitment to being a good neighbour and responsible steward of the environment."

LNG terminal

Construction activities have begun at the LNG terminal with initial preparations for worksite clearing and grading. Activities were initiated earlier in October at two off-site locations, a temporary pier being built on the Pautuxent River to receive barge shipments of large equipment and a temporary location for offices, material staging and parking for project construction workers.

"While it has been talked about for several years, the benefits to the southern Maryland economy will really start to show up in full force as the construction process ramps up in the coming months," Leopold said.

Economic contribution

The Cove Point project is estimated to cost between US$ 3.4 billion and US$ 3.8 billion and will create thousands of skilled construction jobs, 75 permanent jobs and an additional US$ 40 million in annual tax revenue to Calvert County. The county today receives US$ 15.7 million a year from the LNG import facility.

The proposed export facility will be within the 131-acre footprint of the existing LNG terminal site. No new pipelines or storage tanks are needed at the facility. It is targeted to begin operations in late 2017.

Adapted from press release by Katie Woodward

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