Dominion Energy’s Cove Point LNG export terminal in Maryland may be ready to ship its first commissioning cargo by end-September, with construction nearly complete and the company reaching a deal with a third-party shipper to take its initial production, CEO Thomas Farrell said Wednesday.
After the power provider and gas pipeline operator released second-quarter financial results earlier Wednesday that showed a profit decline, Farrell suggested that another key project, the Atlantic Coast Pipeline, could face a construction delay depending on when a voting quorum is restored at the US Federal Energy Regulatory Commission.
The developments come amid high anticipation for new takeaway capacity for increasing volumes of shale gas from the Northeast and for new outlets for that gas in the form of boosting LNG shipments to foreign markets where it is used to heat homes and produce electricity. Timing for the new infrastructure, especially Cove Point as Dominion looks to become the second US exporter of LNG produced from shale gas following Cheniere Energy, is being closely watched.
“As we work toward commercial in-service later this year, we will bring the project to a status of ready for startup this quarter,” Farrell said about Cove Point during a conference call with analysts. “We have received authorization from the Department of Energy to export LNG produced during commissioning. We have an agreement with a third party to provide the commissioning natural gas and export LNG from the facility.”
S&P Global – 08/02/2017
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