Cove Point LNG Facility Approved. Good News for Utica and Marcellus Region

The good news just keeps on rollin' in for the economic impact of Marcellus and Utica shale development.

Again, I'll let the professionals tell the story.

So here is the article:

http://www.theintelligencer.net/page/content.detail/id/613299/Domin...

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Sorry, couldn't read the story. Could you please give details, as I do not plan to subscribe to The Intelligencer.

Sherre,

Sorry, did not realize that they charges to read their stories.

Cove Point is a facility on the Chesapeake Bay that Dominion has wanted to use to ship LNG.

The federal government gave approval.

This facility will be another outlet for the sale of natural gas produced from the Marcellus and Utica.

More outlets means more development. More development means more economic development in WV, OH, PA. More economic development means more jobs, etc., etc., etc.

Here's a better article about the Cove Point project.

https://www.dom.com/business/gas-transmission/cove-point/index.jsp

Thank you.

http://www.bloomberg.com/news/2014-09-30/dominion-cove-point-lng-te...

Dominion Cove Point LNG Terminal Wins Federal Approval

Dominion Resources Inc. (D) won final U.S. approval to export liquefied natural gas from an East Coast terminal it intends to place in a publicly traded partnership.

The U.S. Federal Energy Regulatory Commission issued the permit for the Cove Point terminal in Maryland, according to a statementyesterday. Dominion has proposed a tax-advantaged master limited partnership, or MLP, to own the terminal and use proceeds from a planned initial public offering to help fund construction estimated to cost as much as $3.8 billion.

“This is further confirmation of the viability of Dominion’s investment in exporting liquefied natural gas,” said Paul Patterson, a New York-based analyst with Glenrock Associates LLC.

Dominion, of Richmond, Virginia, is seeking to take advantage of a boom in U.S. natural gas production, driven by advances in drilling techniques including hydraulic fracturing, or fracking. Cove Point is scheduled to begin shipments from the 5.25 million tons a year capacity plant in 2017. The U.S. Energy Department has approved Cove Point’s exports to both free-trade and non-free trade agreement countries, according to FERC’s statement.

Dominion expects to begin construction immediately upon FERC approval, Chief Financial Officer Mark McGettrick said at a Sept. 17 financial conference in New York. The partnership IPO also awaited FERC approval for the project, he said.

Cove Point would be the nearest export terminal to the Marcellus Shale, the most productive U.S. natural gas deposit. Cheniere Energy Inc. (LNG)’s Sabine Pass and Sempra Energy (SRE)’s Cameron terminal in Louisiana are the only U.S. export projects so far to win approval from the FERC and Energy Department.

Minimal Construction

Dominion’s waterfront site, about 60 miles (96 kilometers) southeast of Washington, D.C., has already imported liquefied natural gas and requires minimal construction that would damage the environment, Dominion said in a statement yesterday following the approval.

Opponents including the Chesapeake Climate Action Network, an environmental group, have vowed to contest FERC approval in the courts. FERC failed to consider total impacts from increased natural gas production, including greenhouse-gases associated with fracking, they said in filings.

FERC said the proposal, if mitigated with certain conditions, is “in the public interest.”

Advocates of natural-gas exports in Congress and the industry in recent months have seized on the potential for U.S. supplies of the fuel to cut Europe’s reliance on Russia. Europe gets about 30 percent of its natural gas from Russia, which annexed Ukraine’s Crimea region in March.

The company has in place 20-year contracts with affiliates of Japan’s Sumitomo Corp. (8053) and Gail India (GAIL) Ltd. of New Delhi. Neither Japan nor India have free-trade deals with the U.S.

To contact the reporters on this story: Jim Polson in New York at jpolson@bloomberg.net; Mark Chediak in San Francisco atmchediak@bloomberg.net

To contact the editors responsible for this story: Susan Warren at susanwarren@bloomberg.net Carlos Caminada, Andrew Hobbs

The environmental left never ceases to amaze. As usual they can't persuade based upon their position of impending environmental apocalypse. So they resort to stalling tactics such as frivolous law suits. Law suits funded by tax payer dollars.

The facility in question has been in place for years with minimal (if any) negative environmental impact.

Although Europe will become a larger consumer of LNG from the U.S., I doubt this LNG will supplant natural gas from Russia any time soon. GASPROM has extensive infrastructure in place and presently there are few facilities to import LNG from the U.S.

To be sure there will be an increase of exports from the U.S. which will be good for our economy.

Jesse,

This is not a NIMBY issue. The facility exists; it is just being "re-purposed".

Jesse. This plant is there now...they are expanding not building from the ground up. It's was alresdy in the back yard when they bought the house

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