Dominion Cove Point Receives LNG Export Permission

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Dominion Resources' (NYSE:D) (Richmond, Virginia) Dominion Cove Point LNG project has received permission from the U.S. Department of Energy (DoE) to export liquefied natural gas (LNG) to countries with no free trade agreement with the United States. The project, located near Lusby, Maryland, is the fourth such project to receive DoE authorization to export LNG to non-FTA countries, and the first outside of the U.S. Gulf Coast region.

Construction of the plant, which has an estimated total investment value of approximately $4 billion, entails an overhaul of Dominion's Cove Point LNG receiving terminal, which began construction before large amounts of natural gas were produced from U.S. shale plays, and the U.S. seemed destined to import the bulk of the fuel necessary to meet its needs.

The DoE has granted Dominion permission to export up to 770 million cubic feet per day of LNG from the facility to non-FTA countries. Dominion has already contracted the LNG to Japan's Sumitomo Corporation (Tokyo) and India's GAIL India Limited (New Delhi) for 20 years. A consortium of Kiewit Corporation (Omaha, Nebraska) and IHI E&C International Corporation (Houston, Texas), which is a subsidiary of Japan's IHI Corporation, is performing engineering, procurement and construction work on the project.

Other associated projects will also be necessary to support the facility. These include construction of a 130-megawatt cogeneration power plant (also being constructed by Kiewit and IHI) to provide power to the complex, and unit additions at Dominion's Loudon Compressor Station near Leesburg, Virginia, to help supply gas to the plant.

The Department of Energy is approving LNG export applications in the order received. The three previous projects to receive DoE approval are Cheniere Energy's (NYSE:LNG) Sabine Pass Terminal and Lake Charles Exports LLC's terminal, both in Louisiana, and Freeport LNG's terminal on Quintana Island, Texas.

The next application in the approval queue is another application from Freeport LNG.

View Project Report - 300057132 300118892 300114515

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine 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.