RICHMOND, Va., April 1, 2013 /PRNewswire/ -- Dominion (NYSE: D) announced today it has reached three major milestones in its Dominion Cove Point LNG liquefaction project, pushing it to the forefront among proposed North American LNG liquefaction projects.
- Has fully subscribed the marketed capacity of the project with signed 20-year terminal service agreements. Pacific Summit Energy, LLC, a U.S. affiliate of Japanese trading company Sumitomo Corporation, and GAIL Global ( USA) LNG LLC, a U.S. affiliate of GAIL ( India) Ltd., have each contracted for half of the marketed capacity. Sumitomo in turn has announced agreements to serve Tokyo Gas Co. and Kansai Electric Power Co., Inc. GAIL is the largest natural gas processing and distributing company in India.
- Has awarded its engineering, procurement and construction (EPC) contract for new liquefaction facilities to IHI/Kiewit Cove Point, a joint venture between IHI E&C International Corporation of Houston and Kiewit Corporation of Omaha, Neb., following completion of the front-end engineering and design (FEED) work.
- Plans to submit today its application to the Federal Energy Regulatory Commission (FERC) for the $3.4 billion to $3.8 billion project. The filing is more than 12,000 pages and considers all aspects of the project, including safety, environment, security, cost, community effects, and benefits.
" Japan and India are important allies and trading partners of the United States that are in need of secure sources of natural gas, and Sumitomo and GAIL are high-quality companies working to meet those needs," said Thomas F. Farrell II, Dominion chairman, president and CEO. "We believe the agreements we have signed serve very important economic goals for all three nations."
While the gas liquefied at Cove Point may be sourced from a wide variety of areas, Farrell noted that Cove Point – located on the Chesapeake Bay in Lusby, Md. – will be a premier facility in terms of direct access to the Marcellus and Utica shale plays, two of the most prolific natural gas basins in North America."No other proposed liquefaction facility can provide the strategic value in terms of supply and location," Farrell said. "We believe that having achieved these milestones of signed terminal service agreements, an EPC contract and our FERC filing, we are well positioned to obtain permission from the U.S. Department of Energy to move forward with this vital infrastructure project."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV