Construction begins on Cove Point LNG export project

Dominion Cove Point LNG LP has started construction on the Cove Point LNG export project on Chesapeake Bay near Lusby, Md., a month after the US Federal Energy Regulatory Commission authorized building the facility (OGJ Online, Sept. 30, 2014).

Initial preparations for worksite clearing and grading have taken place at the LNG terminal. Work began earlier this month on a temporary pier on the Pautuxent River to receive barge shipments of large equipment and on a temporary location for offices, material staging, and parking.

IHI/Kiewit Cove Point, a joint venture of IHI E&C International Corp. and Kiewit Corp., serves as the engineering, procurement, and construction contractor for the new liquefaction facilities.

The proposed export facility will be in the 131-acre footprint of the existing LNG terminal site. No new pipelines or storage tanks are needed at the facility. Operations are targeted to begin in late 2017. The project’s estimated cost is $3.4-3.8 billion.

The project underwent a comprehensive 3-year regulatory review and approval process to ensure the project meets all safety, environmental, and other requirements. More than 60 approvals and permits were required before construction could begin.

Dominion has fully subscribed the marketed capacity of the project with 20-year service agreements with ST Cove Point LLC, a joint venture of Sumitomo Corp. and Tokyo Gas Co. Ltd., both of Japan; and Gail Global (USA) LNG LLC, a wholly owned indirect US subsidiary of Gail (India) Ltd.