Cove Point LNG Ltd. Partnership has received a certificate from the U.S. Federal Energy Regulatory Commission to provide gas peaking and storage services beginning in 1995 using its idle Cove Point, Md., liquefied natural gas facilities.
Cove Point LNG Ltd. is a partnership of units of Columbia Gas System Inc. and Potomac Electric Power Co. (Pepco).
The partnership currently has in place firm contracts for almost 25% of the facility's total daily sendout capacity of I bcfd and is discussing additional service requests with other prospective customers.
Longer term, the partnership hopes Cove Point will serve as a receiving terminal for LNG tankers as well as a peaking facility. Built in the mid-1970s, Cove Point LNG facilities have been idle since 1980.
Efforts to recommission the Cove Point LNG facility will begin immediately and is scheduled to be complete by September 1995. First phase involves reactivating two of four storage tanks and associated gas vaporizers as well as construction of a 15 MMcfd liquefaction unit. Recommissioning of existing onshore facilities is expected to cost about $10 million, and the liquefaction unit is expected to cost $16 million.
Under the partnership arrangement, established in November 1993, Columbia LNG Corp. contributed its Cove Point terminal and related pipeline assets in exchange for a 50% interest in the partnership. Units of Pepco are investing in the partnership to acquire the other 50% interest.
Copyright 1994 Oil & Gas Journal. All Rights Reserved.
