Dominion has reached three major milestones in its Dominion Cove Point LNG liquefaction project, pushing it to the forefront among proposed North American LNG liquefaction projects.
The group has fully subscribed the marketed capacity (4.6 Mt/year) of the 5.7 Mt/year project with signed 20-year terminal service agreements. Pacific Summit Energy, a US affiliate of Sumitomo (Japan), and GAIL Global (US affiliate of GAIL (India)), have each contracted for half of the marketed capacity (2.3 Mt/year). Sumitomo in turn has announced agreements to serve Tokyo Gas (1.4 Mt/year) and Kansai Electric Power (0.8 Mt/year).
Moreover, Dominion has awarded the engineering, procurement and construction (EPC) contract for new liquefaction facilities to IHI/Kiewit Cove Point. The group plans to submit its application to the FERC for the US$3.4-3.8bn project. Construction could start as early as 2014, with commissioning in 2017.