Dominion Resources' Cove Point LNG Plant 84% Complete

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Researched by Industrial Info Resources (Sugar Land, Texas)--Dominion Resources' (NYSE: D) (Richmond, Virginia) Cove Point liquefied natural gas (LNG) project in Maryland, is 84% complete, while its 1,600-megawatt Greensville County Power Station project in Virginia is one time and on budget, executives with the energy provider said Wednesday. Industrial Info is tracking 130 active Dominion Resources projects worth more than $36 billion.

Dominion executives talked about the progress of some of the company's major projects during the company's fourth-quarter 2016 earnings conference call. The company reported fourth-quarter 2016 net income of $457 million, compared with $357 million for the same quarter of 2015. Operating revenue for the just-ended quarter totaled $3.08 billion, compared with $2.56 billion in fourth-quarter 2016.

The $4 billion Cove Point LNG Liquefaction Plant project in Lusby, Maryland, will be capable of producing 7.95 million tons per year of LNG for export after it reaches completion, which is expected late this year. Expected revenues from Cove Point export contracts and other growth drivers are expected to support at least 10% year-over-year growth in 2018 operational earnings, the company said. For more information, see Industrial Info's project report.

With its energy security, price transparency and infrastructure advantages, the U.S. is well poised to take advantage of the next phase of global demand for liquefied natural gas (LNG), according to presenters at Industrial Info's recent 2017 Industrial Market Outlook in Houston, Texas. For related information, see January 30, 2017, article - Industrial Market Outlook: More LNG Project Spending On Horizon.

Meanwhile, work continues on Dominion's $1.2 billion natural gas-fired, combined-cycle power station in Greensville County, Virginia, with completion expected in late 2018. Fluor Corporation (NYSE:FLR) (Irving, Texas) is performing the engineering chores for the project. For more information, see Industrial Info's project report. For related information regarding the Power Industry's move to natural gas and renewables, see January 20, 2017, article - Industrial Market Outlook in Review: Transition of U.S. Power Industry in Full Swing.

Dominion Chief Executive Officer Thomas Farrell II noted in a press release that Dominion recently received a draft environmental impact statement from the Federal Energy Regulatory Commission for the Atlantic Coast Pipeline and the related Supply Header project. "Our company continues working toward a construction start date later this year," he said. "We expect to complete these projects in late 2019."

The 600-mile pipeline, which would transport up to 1.5 billion cubic feet of natural gas per day, is a joint venture among Dominion, Duke Energy Corporation (NYSE:DUK) (Charlotte, North Carolina), Piedmont Natural Gas Company (NYSE:PNY) (Charlotte) and Southern Company Gas (Atlanta, Georgia). Industrial Info is tracking $1.43 billion in active projects associated with the pipeline, which would ship natural gas sourced from the Marcellus and Utica shales from West Virginia through Virginia, to eastern North Carolina. For related information, see January 9, 2017, article - Atlantic Coast Pipeline Gets Boost from FERC, County Supervisors.

For full-year 2016, Dominion reported $2.12 billion in net income, compared with $1.89 billion in 2015. Last year's operating revenue was $11.73 billion, compared with $11.68 billion in 2015. The company attributed the increase in earnings to growth projects in its regulated electric and gas service areas, lower capacity expenses and investment tax credits from solar facilities.

For 2017, the company said a reduction of Cove Point import contract revenues could hurt earnings. A second refueling outage at its Millstone Nuclear Power Station in Waterford, Connecticut, could also weigh down earnings, it said. For more information, see Industrial Info's project report.

Positive earnings drivers for this year include increased revenues from growth projects and the addition of operations from its merger with Questar Corporation. For related information, see August 24, 2016, article - Dominion, Questar to Tie the Knot in the Rockies in Merger Fueled by Pipeline, Storage, Solar Projects.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.