The Department of Energy (DOE) has approved Dominion Cove Point LNG Inc.’s (DCP) application to export domestically produced liquefied natural gas (LNG) from its import terminal in Maryland to countries that have a free trade agreement (FTA) with the United States.
DCP, a subsidiary of Richmond, VA-based Dominion, plans to export up to 1 Bcf/d of domestic gas, or about 7.82 million metric tons per year, over a 25-year period to any country that has, or in the future develops, the capacity to import LNG via tanker, or that has — or in the future enters into — an FTA with the United States. Exports from DCP’s terminal are expected to begin by the end of 2016, according to the company (see Daily GPI, Sept. 7).
“This LNG may be exported to Australia, Bahrain, Canada, Chile, Dominican Republic, El Salvador, Guatemala, Honduras, Jordan, Mexico, Morocco, Nicaragua, Oman, Peru and Singapore, and to any nation that the United States subsequently enters into a FTA requiring national treatment for trade in natural gas, provided that the destination nation has the capacity to import [LNG via] ocean-going vessels,” said the order, which was issued by DOE’s Office of Fossil Energy [DOE/FE Order No. 3019].
The application was the first of a two-part request by DCP to export domestic gas from its Calvert County, MD, terminal. DCP earlier this month filed its second-part request to export domestically produced LNG to non-FTA countries (see Daily GPI, Oct. 5). It is also seeking authorization to re-export foreign-sourced LNG (see Daily GPI, Aug. 15). Both requests still are pending at DOE.
Dominion Cove Point said the DOE’s approval of its request to export LNG to FTA countries will increase activity at its terminal, which has been lagging this year, and would ease constraints on northeastern pipelines and give Marcellus Shale gas producers an additional outlet for their supply.
It anticipates entering into one or more long-term (more than two years and up to 25 years) contractual agreements with customers for gas liquefaction and LNG export services. DCP also will require the approval of the Federal Energy Regulatory Commission to made modifications to its facility so that it can conduct liquefaction and export operations.
The DCP terminal connects, via its own pipeline, to the major Mid-Atlantic gas transmission systems of Transcontinental Gas Pipe Line, Columbia Gas Transmission and Dominion Transmission.
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