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Cove Point LNG Completes Open Season, Executes Agreements

Cove Point LNG Completes Open Season, Executes Agreements

Columbia Energy Group's subsidiary Cove Point LNG Ltd. partnership said Friday it had completed its open season for firm LNG tanker discharging service at its terminal on the Maryland coast.

Cove Point also executed binding precedent agreements with Coral LNG Inc., El Paso Merchant Energy - Gas L.P. and with a subsidiary of BP Amoco Corp. that subscribed for the service offered in the open season. The agreements be effective following regulatory approval.

Cove Pont began its open season process for the service in February (see Daily GPI, Feb. 20), which initially will provide 4.25 Bcf of storage capacity and 750,000 Dth/d of terminal and pipeline capacity to accommodate LNG imports by the three customers. The open season and the agreements also provide for a 2.5 Bcf (vapor equivalent) storage capacity expansion of Cove Point.

Soon, Cove Point expects to file an application with FERC that would allow the LNG discharge service, and also to re-commission Cove Point's marine facilities. The application also would allow the Lusby, MD terminal to construct new facilities. Currently, the Cove Point terminal includes liquefied gas storage and terminal operations, and an 87-mile gas pipeline that connects with gas pipelines in Northern Virginia.

Carolyn Davis, Houston

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