Dominion’s Cove Point LNG starts production

Dominion Energy said Wednesday it begun producing liquefied natural gas at its Cove Point terminal in Maryland, the second US facility to produce LNG from shale gas.

“All major equipment has been operated and is being commissioned as expected following a comprehensive round of testing and quality assurance activities,” the company said in a statement.

Shell NA LNG is providing the natural gas needed for liquefaction during the commissioning process and will off-take by ship the LNG that is produced.

When commissioning is complete, Dominion’s LNG export facility will produce the chilled fuel for ST Cove Point, the joint venture of Japan’s Sumitomo Corporation and Tokyo Gas, and for India’s GAIL under 20-year contracts.

The $4 billion Cove Point facility has a nameplate capacity of 5.25 mtpa of LNG. It is expected to enter commercial service in early March.

Construction of the liquefaction facility began in October 2014, following more than three years of federal, state and local permit reviews and approvals.