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Dominion Cove Point receives authorization to export LNG to non-free trade countries

The U.S. Energy Department announced today they have conditionally authorized Dominion Cove Point LNG, LP to export domestically produced LNG to countries that do not have a Free Trade Agreement with the United States from the Cove Point LNG Terminal.

Dominion Cove Point LNG is located on the Chesapeake Bay in Lusby, Maryland, south of Baltimore. Dominion acquired Cove Point from Williams on Sept. 5, 2002, and began receiving ships in the summer of 2003.  

Dominion Cove Point previously received approval to export LNG from this facility to FTA countries on October 7, 2011.  Subject to environmental review and final regulatory approval, the facility is conditionally authorized to export at a rate of up to 0.77 billion cubic feet of natural gas a day (Bcf/d) for a period of 20 years.

Dominion Cove Point owns both the existing Cove Point LNG Terminal and the 88-mile Cove Point pipeline. Dominion Cove Point has stated in their application that natural gas will be delivered to the Cove Point Pipeline from the interstate pipeline grid, thereby allowing gas to be sourced broadly.  Dominion also stated their pipeline system provides access to Appalachian (including Marcellus Shale) supply, as well as connections to supplies from the Gulf of Mexico area, the mid-continent, the Rockies, and Canada. The company noted they operate the largest underground natural gas storage system in the country, as well as the Dominion South Point trading hub.

Dominion Cove Point LNG is the fourth U.S. Department of Energy company authorized to export domestically produced LNG to countries that do not have a Free Trade Agreement.  The others are; Sabine Pass Liquefaction, LLC (Cheniere Energy), Freeport LNG Expansion, L.P. and FLNG Liquefaction, LLC and Lake Charles Exports, LLC.