Dominion starts construction on Cove Point LNG liquefaction project

US energy firm Dominion has started construction on the Cove Point LNG Liquefaction project, which is expected to cost between $3.4bn and $3.8bn.

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.

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

The project has 20-year service agreements with ST Cove Point, a joint venture of Sumitomo and Tokyo Gas, and GAIL Global (USA) LNG.

Dominion chairman Thomas Farrell said: "Cove Point will supply critical American allies in India and Japan with much-needed natural gas that will help reduce global greenhouse gas emissions.

"Although the doubters said it could not be done, in late 2017 our liquefier will be online, and ships will begin receiving LNG for export."

Upon its completion in late 2017, Cove Point will produce about 5.25 million tonnes of liquefied natural gas annually for the two customers.

The LNG shipments from Cove Point are expected to reduce the US trade imbalance by about $2.8bn, and possibly around $7.1bn, annually.