Citing favorable results from an inspection earlier this month, FERC has given Dominion Cove Point LNG LP conditional approval to receive a single test cargo of liquefied natural gas (LNG) in late July.

“This authorization is based on the results of my staff’s inspection on July 2…, which found satisfactory progress [has been made] in reactivating your LNG import terminal in Cove Point, MD,” wrote J. Mark Robinson, director of FERC’s Office of Energy Projects (OEP), in a letter to the company. The receipt of a test cargo is one of the final steps prior to the commercial start-up of the LNG facility [CP01-76].

The results of the latest inspection of the Cove Point LNG terminal were an improvement over the last inspection conducted in May, during which FERC cited a number of deficiencies that needed to be corrected.

FERC staff said its approval was conditioned on Dominion Cove Point first completing the construction of certain systems and associated equipment, complying with certain Department of Transportation (DOT) regulations, providing “air gaps” between a flammable fluid system and electrical conduit or wiring systems, and the LNG terminal undergoing a final inspection by the OEP staff prior to the arrival of a test LNG cargo.

Staff further noted that its approval only covered the receipt of the test LNG cargo, not the commencement of service at the Cove Point facility. The company hopes to begin receiving commercial shipments in early August.

Dominion Resources acquired the mothballed Cove Point LNG import terminal from Williams in 2002. The facility has LNG storage capacity of 5 Bcf and is looking to expand that to 7.8 Bcf. Cove Point’s liquefaction capacity has been pegged at 15 MMcf/d, and its send-out capability at 1 Bcf/d.

©Copyright 2003 Intelligence Press Inc. Allrights reserved. The preceding news report may not be republishedor redistributed, in whole or in part, in any form, without priorwritten consent of Intelligence Press, Inc.