Dominion Exports First LNG Cargo from Cove Point

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Researched by Industrial Info Resources (Sugar Land, Texas)--Dominion Energy Incorporated (NYSE:D) (Richmond, Virginia) reported that it shipped its first cargo of liquefied natural gas (LNG) from its Cove Point LNG liquefaction facility in Lusby, Maryland. Royal Dutch Shell plc (NYSE:RDS-A) (The Hague, Netherlands) provided the natural gas for liquefaction and is purchasing this first commissioning cargo of LNG.

Commissioning is wrapping up at the plant. When it is complete, the facility will supply a joint venture of Sumitomo Corporation (Tokyo, Japan) and Tokyo Gas Company Limited (Tokyo), as well as GAIL (India) Limited (New Delhi, India) under 20-year contracts.

The Cove Point plant is capable of liquefying 1 billion cubic feet per day of natural gas and producing 5.25 million tons of LNG per year. Construction on the plant began in late 2014 and cost approximately $4 billion. Cove Point was previously an import terminal, but as with other facilities, it was decided to turn it into an LNG export terminal after the U.S. began producing cheap and abundant gas from shale formations. For more information, see Industrial Info's project report.

The facility is the second LNG-export facility in the U.S., joining Cheniere Energy Incorporated's (NYSE:LNG) (Houston, Texas) Sabine Pass facility in Louisiana, which began exporting LNG in early 2016. Sabine Pass now has four 4.5 million-metric-ton-per-year trains, and a fifth is under construction and expected to be completed in 2020. For more information, see Industrial Info's project report. Cheniere is building a second facility in Corpus Christi, Texas, with two trains under construction that are expected to be completed next year and a final investment decision on a third train expected later this year. Bechtel Group Incorporated (San Francisco, California) is performing engineering, procurement and construction (EPC) on all trains. For more information, see Industrial Info's project reports on Train 1, Train 2 and Train 3 at Corpus Christi.

Before the Corpus Christi facility comes online, Cove Point and Sabine Pass will be joined by another high-profile U.S. LNG export facility. Freeport LNG Development LP (Houston) plans to complete the first train of its LNG facility in Quintana, Texas, in the third quarter of this year. The facility will produce 4.6 million metric tons per year of LNG. Tolling agreements for 100% of the train's production were made with Osaka Gas Company Limited (Osaka, Japan) and Chubu Electric Power Company Incorporated (Nagoya, Japan). Construction on the project, which has an estimated total investment value (TIV) of $5.5 billion, began in late 2014. A consortium of Chicago Bridge & Iron Company NV (NYSE:CBI) (CB&I) (The Hague), Zachry Group (San Antonio, Texas) and Chiyoda Corporation (Yokohama, Japan) is providing EPC work. For more information, see Industrial Info's project report.

Two additional trains are under construction at Freeport LNG's facility, each of which will add 4.6 million metric tons of LNG production capacity. The trains are expected to be completed next year. Construction of a fourth train at the facility could begin next year, with completion in 2023. For more information, see Industrial Info's project reports on Train 2, Train 3 and Train 4.

Also scheduled for completion next year is Sempra Energy's (NYSE:SRE) (San Diego, California) LNG liquefaction plant in Hackberry, Louisiana. The facility will include three liquefaction trains, each capable of producing 5 million metric tons per year of LNG. Construction began in late 2014, with CB&I providing EPC work on the project, which has an estimated TIV of $10 billion. For more information, see Industrial Info's project report and February 28, 2018, article - Sempra Energy at Work on $21.5 Billion in Active Projects, Nears Oncor Acquisition.

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