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Dominion LNG application approved by DOE

LNG Industry,

The US Department of Energy (DOE) has sanctioned Dominion Cove Point LP’s application to export liquefied natural gas (LNG) to countries without a free-trade agreement (FTA) with the US. Dominion Cove Point’s unit on Cheapside Bay has been awarded conditional authorisation to export up to 0.77 billion ft3/d for 20 years.

Bill Cooper, president of Center for Liquefied Gas, said: “We welcome the announcement of DOE’s approval order for Dominion Cove Point LNG, which is a further step in the right direction towards realising the economic benefits expanded LNG exports will bring to the U.S. However, we urge DOE to continue the momentum and move forward with the 20 applications that remain pending. With a robust regulatory process in place and thorough review conducted, LNG exports will clearly be a win-win for our economy, industries and consumers.”

Thomas F. Farrell II, CEO of Dominion Resources Inc., echoed this enthusiasm: “We agree with DOE’s decision that exports are expected to bring economic benefits to the country. It is good news on many fronts, including the thousands of jobs that will be created, the boost in government revenues that will result, and the support it provides to allied nations.”


Dominion’s LNG liquefaction and export operations are due to get underway in 2014, once regulatory approval and permits have been ratified, with a view to completion by 2017. It is estimated that construction will cost in the region of US$ 3.4 – 3.8 billion.

20 year deal

Pacific Summit Energy LLC and Gail Global (USA) LNG LLC have both signed contracts which will see them operating at the terminal for 20 years, and render the terminal fully subscribed.


Edited from various sources by Ted Monroe

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