Dominion to expand Cove Point
Statoil will take the extra capacity
gasmattersonline.com
Dominion plans to nearly double the send-out capacity at its Cove Point LNG facility from 1 Bcf/d to 1.8 Bcf/d. Dominion has also signed a non-binding letter of intent that will see Statoil more than quadruple its regasification capacity at Cove Point by taking the proposed extra capacity. If the parties turn this into a firm deal, Statoil will have the extra capacity for 20 years. The expansion, if approved, should be completed by late 2008.
Statoil currently holds a one-third capacity share at Cove Point, about 0.24 Bcf/d of regasification capacity. With the expansion, this will be increased to about 1.04 Bcf/d.
Statoil has said that about 1.76 mtpa of LNG from its Sn�hvit development in the Barents Sea is to be directed to Cove Point between 2006 and 2023 to service its existing capacity there. Until Sn�hvit comes on stream, Statoil is sourcing LNG from other producers in Algeria and Trinidad & Tobago.
Dominion intends to build two new LNG storage tanks, additional to an existing expansion project. There is currently 5 Bcf of storage, set to increase to 7.8 Bcf by 2005. The new expansion will see total storage capacity of 14.6 Bcf by 2008.
The company also plans to expand two pipelines to cope with the extra capacity (see Gas Matters Today, December 4, 2003).
Thos Capps, Dominion's chairman and CEO said: �Our proposal to expand an existing site is the most practical and efficient plan of many proposed for our nation so far. It should rise to the top of the list of proposed LNG projects.�
Dominion now needs approval from the Federal Energy Regulatory Commission (FERC) for the expansion. With LNG storage tanks taking about three years to build, FERC approval must be anticipated in 2005. |
