East Coast joins the LNG race
LUSBY—After more than three years of construction, preceded by more than three years of federal, state and local permit reviews and approvals, Dominion Energy is in the final stage of commissioning the first natural gas export terminal on the East Coast. A transport ship carrying the first load of liquefied natural gas produced for export departed on March 1.
The Cove Point LNG export terminal, on the Chesapeake Bay in Lusby, has completed a comprehensive round of testing and quality assurance activities and launched production in January. The approximately $4 billion facility is one of the largest construction projects in the state, providing more than 10,000 jobs, with $565 million in payroll. Shell North America LNG is providing the natural gas for export into the global market.
“This project has the potential to make a significant contribution to Southern Maryland’s economy,” said U.S. Rep. Steny Hoyer of Maryland.
Charlie Riedl, executive director of the trade group Center for LNG, agreed, adding, “This is not just important for Cove Point. It’s important for the U.S. LNG industry. Cove Point’s production of LNG represents a fast-emerging industry providing thousands of jobs at home, as well as environmental and geopolitical benefits abroad. 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.”
Export quantities of LNG from Cove Point are expected to reach 750 to 770 million cubic feet per day.
When commissioning has been completed, Cove Point will produce LNG for ST Cove Point, which is the joint venture of Sumitomo Corp. and Tokyo Gas, and for Gail Global (USA) LNG, the U.S. affiliate of GAIL (India) Ltd., under 20-year contracts.