Cove Point LNG LP, a subsidiary of Herndon, VA-based ColumbiaEnergy Group, is holding an open season through March 16 for a firmLNG tanker discharging service at its Cove Point LNG terminal. Thenew service will include the unloading of LNG from tankers, LNGstorage, vaporization, and delivery of gas to points along CovePoint’s existing pipeline.

Cove Point LNG is offering 750,000 Dth/d of deliverability and4.25 Bcf of vapor equivalent storage capacity initially. Theservice includes proposed expansion of available storage capacityto 6.75 Bcf about one year after the start-up of the LNG receivingoperations. Pending approval by the Federal Energy RegulatoryCommission, Cove Point LNG plans to begin LNG tanker discharging bylate 2001.

Located in Lusby, MD, the Cove Point terminal includes liquefiedgas storage and terminal operations, and an 87-mile gas pipelinethat connects with gas pipelines in Northern Virginia. The terminalhas installed send-out capacity of 1 Bcf/d. With the proposedstorage expansion, total LNG storage at Cove Point will be 7.5 Bcfof vapor equivalent gas. The Cove Point terminal currently providespeak shaving services to customers in the mid-Atlantic andsoutheastern regions.

Earlier this month, an affiliate of Columbia LNG Corp. paid$40.7 million for the remainder of the facility it did not alreadyown (see NGI Jan. 17). Columbia LNG President Michael Bridges saidat the time, “Columbia saw a good business opportunity here withthe LNG import business. There’s clearly a renewed interest in LNGimports into the United States.” He cited recent LNG importactivities by Coral Energy and Enron, among others and said hiscompany has talked to a number of potential importers who haveexpressed “strong indications of interest” in Cove Point with aneye toward serving Mid-Atlantic markets.

Joe Fisher, Houston

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