Dominion and Statoil sign contract for Cove Point expansion
Mon, 12 July 2004
RICHMOND, Virginia-based Dominion and Norway’s Statoil announced an agreement on 14 June on a 20-year contract giving Statoil access to increased capacity at Dominion’s Cove Point liquefied natural gas plant in Maryland.
The two companies had signed a letter of intent in February. Plans call for increasing the plant’s capacity from 1bn cuft/d to 1.8bn cuft/d, and its storage capacity from 7.8bn cuft to 14.6bn cuft by 2008. The project also includes associated pipeline and natural gas storage projects in Maryland and Pennsylvania. Construction of new LNG storage tanks would begin as soon as regulatory approval is received and will take about three years to complete. New pipelines in Maryland and Pennsylvania will be timed to go into service no later than the completion of the new LNG facilities, which is anticipated to be in late 2008.