Cove Point LNG Limited Partnership, a subsidiary of Herndon,VA-based Columbia Energy Group, is holding an open season throughMarch 16 for a firm LNG tanker discharging service at its CovePoint LNG terminal. The new service will include the unloading ofLNG from tankers, LNG storage, vaporization, and delivery of gas topoints along Cove Point’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 $40.7million for the remainder of the facility it did not already own (seeDaily GPI, Jan. 12). Columbia LNGPresident Michael Bridges said at the time, “Columbia saw a goodbusiness opportunity here with the LNG import business. There’sclearly a renewed interest in LNG imports into the United States.” Hecited recent LNG import activities by Coral Energy and Enron, amongothers and said his company has talked to a number of potentialimporters who have expressed “strong indications of interest” in CovePoint with an eye toward serving Mid-Atlantic markets.

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