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
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
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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