FERC permits commissioning cargo exports from Cove Point LNG

The United States Federal Energy Regulatory Commission granted permission to Dominion to export commissioning volumes produced at its Cove Point liquefaction project near Lusby, Maryland.

The authorization does not grant approval for commencement of service, FERC noted in its notice, on Monday.

Dominion filed the request for authorization on November 9, adding it will file weekly reports on the ongoing commissioning activities once LNG is produced until FERC authorizes the commencement of service.

Earlier this year, the company sought permission to export commissioning cargoes over a period of two years, starting on the date of the first short-term export, which is expected to occur by the end of the year.

The facility is expected to start production during the month of November as the project entered the final phase of start-up in October.

The commissioning exports would reach an amount of equivalent to 250 billion cubic feet, with Dominion saying the commissioning cargoes could be delayed up to six months maximum.

Once it is completed, the liquefaction facility will have the capacity to produce 5.25 million metric tons of liquefied natural gas per year.

The production capacity has been fully subscribed with Pacific Summit Energy, a U.S. unit of Sumitomo Corporation, as well as with GAIL Global (USA) LNG, a U.S. unit of India’s utility GAIL, under 20-year terminal service agreements.

LNG World News Staff