Cove Point Produces First LNG

Dominion Energy said January 31 it has begun producing LNG from its $4bn, 5.25 metric tons/year (mt/y) Cove Point project in Lusby, Maryland.

Shell NA LNG provided the gas feedstock for the commissioning phase at Cove Point, and will off-take all LNG volumes produced from that supply. Once commercial operations begin in early March, Cove Point will produce gas for ST Cove Point, a joint venture of Sumitomo and Tokyo Gas, and for GGULL, the US affiliate of GAIL (India). Both groups have signed 20-year take-or-pay contracts for Cove Point LNG.

Construction of the liquefaction facility began in October 2014, following more than three years of federal, state and local permit reviews and approvals. It is the largest construction project ever for Maryland and for Dominion Energy, involving more than 10,000 craft workers and a payroll of more than $565mn.