Sumitomo, Tokyo Gas Form Cove Point JV
Sumitomo Corporation and Tokyo Gas, through their subsidiaries, established the joint venture company ST Cove Point LLC in order to carry out contracted natural gas liquefaction processing and liquefied natural gas sales for the Cove Point LNG Project in the US state of Maryland.
The Project aims to procure US-produced natural gas through Pacific Summit Energy, a wholly-owned subsidiary of Sumitomo Corporation, and export about 2.3 million tons per year of LNG liquefied by Dominion Cove Point LNG (Dominion), the operator of the project. A license for exporting LNG to countries with which the US has no free trade agreement was obtained from the US Department of Energy in September 2013, and Dominion plans to start commercial operations in 2017.
The terminal service agreement concluded by PSE with Dominion will be assigned to ST Cove Point. In accordance with the LNG Heads of Agreement concluded with Sumitomo Corporation, 1.4 million tons per year are to be delivered to TG Plus Co, a wholly-owned subsidiary of Tokyo Gas, and 0.8million tons per year to Kansai Electric Power Co, via Sumitomo Corporation.