Major Expansion of Dominion Cove Point LNG Plant
[ This is a repeat, I can't get the previous story to display properly - DPR ]
biz.yahoo.com
Wednesday February 11, 3:00 am ET
Statoil Signs Letter of Intent to Contract New Capacity at Chesapeake Bay Facility
RICHMOND, Va., Feb. 11 /PRNewswire-FirstCall/ -- Dominion (NYSE: D - News) announced today that it plans to nearly double capacity at its Dominion Cove Point liquefied natural gas plant in order to move more natural gas into high- demand Mid-Atlantic and Northeast markets. The terminal expansion project includes associated pipeline projects and would be completed late in 2008.
* (Logo: newscom.com )
* (Photo: newscom.com )
Dominion also said it has signed a letter of intent with a subsidiary of Statoil ASA (NYSE: STO - News), a global gas and oil company, to contract for the new capacity. Under terms of the pending long-term agreement, Statoil will purchase firm LNG tanker discharge services and related transportation, as well as downstream firm transportation and storage services.
"High consumer bills and continued price volatility conclusively demonstrate the need for new supplies of natural gas and more flexible, efficient transportation systems in the Mid-Atlantic and Northeast regions," said Thos. E. Capps, Dominion's chairman and chief executive officer. "Together, Dominion and Statoil are stepping up to meet the need. Statoil will provide a secure, steady source of natural gas from its sources in Norway and elsewhere.
"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 will ask the Federal Energy Regulatory Commission to approve an increase in the plant's daily output capacity from 1 billion cubic feet (Bcf) per day to 1.8 Bcf per day. Storage capacity at the terminal would increase to approximately 14.6 Bcf. Dominion Cove Point now has 5 Bcf of LNG tank storage, with another 2.8 Bcf under construction and scheduled to be completed in 2005.
Two pipeline projects are also proposed. Dominion Cove Point plans to expand its pipeline in Maryland to deliver more natural gas to interstate pipeline connections in Virginia. Dominion's interstate pipeline company, Dominion Transmission, Inc., also plans to build a pipeline and two compressor stations in central Pennsylvania to move natural gas from its Perulack station in Juniata County to the Dominion South Point market hub, other interstate pipelines and the major natural gas storage fields at Leidy in Clinton County, Pennsylvania. Leidy is a major storage center for natural gas used by markets throughout the Northeast. Both pipeline expansions will follow the FERC- approved open season process where other shipper interests may be evaluated.
"These two pipeline projects are a key to getting new gas supplies to where they are needed in the Mid-Atlantic and Northeast," Capps said. "The Maryland project will bring more winter supplies to the Mid-Atlantic region, and the Pennsylvania project will allow shippers to send some supplies to Leidy in the summer, store them and then move them to the Northeast during the winter."
Construction of new LNG storage tanks would begin as soon as regulatory approval is received and will take about three years to complete. Construction of the pipelines in Maryland and Pennsylvania will be timed to go into service no later than at the completion of the new LNG facilities, which is anticipated to be in late 2008.
Dominion purchased the LNG terminal at Cove Point in 2002 and successfully reopened it in the summer of 2003. The plant is located on the Chesapeake Bay, south of Baltimore.
Dominion is one of the nation's largest producers of energy, with an energy portfolio of more than 24,000 megawatts of generation, 6.4 trillion cubic feet equivalent of proved natural gas reserves and 7,900 miles of natural gas transmission pipeline. Dominion also operates the nation's largest underground natural gas storage system with more than 960 billion cubic feet of storage capacity and serves 5.3 million retail energy customers in nine states. For more information about Dominion, visit the company's Web site at www.dom.com .
Source: Dominion |
