June 17, 2015

Cove Point LNG facility

Cove Point LNG terminal
I haven't read anything lately about the proposed expansion of the Cove Point liquified natural gas facility near Calvert Cliffs, Maryland. But every time we sail by, I expect to see signs of life. All was quiet there today.

The current facility, about 90 minutes from D.C., was built in the 1970s for importing natural gas. But Dominion Energy wants to build a natural gas export facility on the same land, at a cost of as much as $3.8 billion. The project includes an on-site 130 megawatt power plant, a 60-foot-tall permanent sound wall, and storage units.

The approval process for any exportation facility is quite lengthy, with federal, state and local permits required. In 2013, the U.S. Department of Energy granted conditional approval to Dominion Energy to export approximately 770 million cubic feet of natural gas per day from Cove Point.

Before construction can begin, however, Dominion needed approval from the Federal Energy Regulatory Commission (FERC). In May, 2015, the Energy Departmen issued a final authorization for Dominion Cove Point LNG, LP to export domestically produced liquefied natural gas (LNG) to countries that do not have a Free Trade Agreement (FTA) with the United States. The Cove Point LNG Terminal in Calvert County, Maryland is authorized to export LNG up to the equivalent of 0.77 billion standard cubic feet per day (Bcf/d) of natural gas for a period of 20 years.

In May 2013, Maryland Gov. Martin O’Malley (D), now a declared presidential candidate, signed a law giving Calvert County the authority to grant a tax break to Dominion. Look for that to become a campaign issue.