The US Federal Energy Regulatory Commission (FERC) has approved the Cove Point LNG commissioning activities (Maryland, US), namely the LNG piping to the existing LNG tanks and permanent fuel gas piping, based on the FERC staff inspections. Dominion Energy is now able to proceed with the next phase of commissioning activities and introduce hazardous fluids at the facility but the authorization does not grant approval for the commencement of service, which will be granted following a determination that the facilities have been constructed in a safely manner, in accordance with the commission order and applicable standards.
The US$4bn Cove Point LNG export project will be built on the site of the existing regasification terminal and will use its storage facilities. It will have a capacity of 5.25 Mt/year (21.8 mcm/d) and is expected to be commissioned in late 2017 or early 2018. It is 96% complete as of October 2017 and Dominion Energy expects the facility to enter service by the end of the year. Cove Point LNG will be the first gas liquefaction project and export facility on the US East Coast.
As of today, the liquefaction project's marketed capacity is completely subscribed under a 20-year service agreement. Pacific Summit Energy, LLC, a U.S. subsidiary of the Japanese trading company Sumitomo Corporation, and GAIL Global LNG LLC, a U.S. affiliate of the Indian company GAIL Ltd., have each contracted 50% of the marketed capacity.
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