Judge Moves Dominion's Cove Point LNG Exports One Step Closer
Dominion Resources cleared another hurdle to launching liquified natural gas exports from Cove Point, Md., Friday, when Prince George's County Circuit Judge James Salmon said its agreement with environmental agencies allows it to build liquefaction facilities inside the plant's fenced area and export liquefied natural gas. The Sierra Club had said an earlier court settlement had given it oversight over the LNG exports, but the judge disagreed.
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As a result, Dominion said it will move forward with engineering, marketing and regulatory review processes. The Sierra Club had maintained Dominion needed its permission to build the facilities. The liquefaction project is expected to cost between $2.5 billion and $3.5 billion.
Dominion has already received permission from the Department of Energy to act as an agent for liquefied natural gas exports to countries with free trade agreements and is waiting for DOE action on its application for countries without a free trade agreement. Dominion also began the Federal Energy Regulatory Commission's pre-filing process in anticipation of filing an application in 2013. Engineering studies are continuing and are expected to be completed soon, it said.