Dominion starts construction activities for Cove Point LNG export project

Dominion has started construction-related activities for the Cove Point liquefied natural gas (LNG) export project, which is expected to cost between $3.4bn and $3.8bn, in the US.

The project in Calvert County, Maryland will have the capacity to export up to 5.75 metric tonnes of LNG a year.

The proposed export facility will be located within the 131-acre footprint of the existing LNG terminal site.

Construction activities have started at the LNG terminal with preparations for worksite clearing and grading.

Dominion has subscribed the marketed capacity of the project with 20-year service agreements with ST Cove Point, a joint venture of Sumitomo and Tokyo Gas; and GAIL Global (US) LNG.

IHI/Kiewit Cove Point is serving as the engineering, procurement and construction contractor for the new liquefaction facilities.

The US Federal Energy Regulatory Commission has recently approved the Cove Point project, which is the fourth LNG export development to secure approval to build and operate.

Dominion Energy business unit president Diane Leopold said: "The Cove Point LNG export project will help meet the world’s need to move toward cleaner fuels.

"At the same time, it will provide significant economic benefits in terms of thousands of construction jobs, hundreds of millions of dollars in new tax revenues over the life of the facility, and an outlet for some of the nation’s surplus natural gas supplies."

Dominion operates natural gas storage systems with 947 billion cubic feet of storage capacity in the US.