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Dominion Cove Point Officially Enters Commercial LNG Service

Dominion Energy's liquefied natural gas (LNG) export facility, Cove Point, on Chesapeake Bay in Maryland has officially entered commercial service.

On Tuesday, Dominion said "after completing a planned maintenance outage, the facility has been ramping up to full production of LNG from natural gas provided by its export customers since late March."

Last month, the Federal Energy Regulatory Commission authorized Dominion Energy Cove Point LNG LP to commence service for facilities in Maryland and Virginia involved in the liquefaction project, which includes the terminal in Lusby, MD [CP13-113].

Cove Point is the second U.S. facility to export LNG sourced from domestically produced gas in the Lower 48. Cheniere Energy Inc.'s Sabine Pass LNG terminal in Cameron Parish, LA, began exporting gas in February 2016.

Center for LNG (CLNG) Executive Director Charlie Riedl said Cove Point entering commercial service marked "an important day" for the facility "and the LNG industry at large...Now that the facility has entered into commercial service, Cove Point will bring U.S. natural gas and energy options to allies and partners across the globe looking to reduce emissions and pollution.

“Vast natural gas resources in the United States enable LNG exports to bring significant benefits to our country's economy,” Riedl said. “As more LNG exports come online, those benefits will increase exponentially, in terms of job creation, investment and supply contracts across the whole natural gas supply chain."

CLNG said Cove Point was the largest construction project in the history of Maryland. The facility attracted $4 billion worth of investment and created more than 10,000 jobs, it noted.

Cove Point's marketed capacity is fully subscribed under 20-year service agreements. Pacific Summit Energy LLC, a U.S. affiliate of Japan's Sumitomo Corp., as well as Gail (India) affiliate Gail Global (USA) LNG LLC, have each contracted for half of the marketed capacity. Sumitomo has agreements to serve Tokyo Gas Co. and Kansai Electric Power Co. Inc.

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