“Feds Give OK for Exports That Include Ohio Valley Gas”
From an Article by Casey Junkins, Wheeling News-Register, May 8, 2015
Wheeling, WV — Dominion Resources received final federal approval Thursday to export 770 million cubic feet of liquefied natural gas daily from its $3.8 billion Cove Point site in Maryland, pending a last-minute legal appeal from environmental groups.
While citing Energy Information Administration statistics that forecast U.S. natural gas production to reach an average rate of 72.4 billion cubic feet per day this year, the Obama administration’s Department of Energy announced approval of Dominion’s plans Thursday, much to the delight of industry leaders.
“This is a major milestone for a multi-billion-dollar project that has waited years for federal approval,” said Erik Milito, director of Upstream and Industry Operations for the Washington, D.C.-based American Petroleum Institute.
Photo: Dominion Resources’ Cove Point facility in eastern Maryland has received federal approval to export liquefied natural gas from a network that includes the Ohio Valley.
“This facility, and others like it, will allow America to be a net natural gas exporter by 2017, according to EIA. U.S. exports will help to bring energy security to our allies, while supporting jobs and economic growth in American manufacturing, construction, energy development, engineering, and other areas,” he said.
Dominion operates the Blue Racer Natrium complex in Marshall County, as well as other natural gas processing infrastructure in both Ohio and West Virginia, which will now be part of the network used to send material to Cove Point for export so the gas can be shipped throughout the world.
Energy department officials said Thursday they extensively and carefully reviewed Dominion’s project before signing off on it. They said exporting 770 million cubic feet per day from Cove Point for a period of 20 years is “not inconsistent with the public interest.”
“The Cove Point facility has been on the western shore of the Chesapeake Bay as an LNG import terminal for nearly 40 years,” Dominion Energy President Diane Leopold said. “While we are making a substantial investment to add export capabilities, we intend to keep unchanged our commitment to being a good neighbor and responsible steward of the environment.”
“The Cove Point Liquefaction project is well under way with nearly 80 percent of engineering complete and construction at the site is on time and on budget,” Dominion Chairman, President and CEO Thomas F. Farrell II, added.
However, officials with the San Francisco-based Earthjustice environmental group continue fighting the Cove Point plan. The group filed a last-minute appeal against the project in the Washington, D.C., federal appellate court Thursday, while blaming the Federal Energy Regulatory Commission for not properly evaluating how the plan will affect Calvert County, Md.
“Time and again, FERC has shown a blatant disregard for the health and safety of people and the climate and, we believe, the law. Tragically, FERC’s foot-dragging has allowed Dominion bulldozers to start construction before Calvert County residents had legal recourse to challenge the agency’s decision,” said Mike Tidwell, director of the Chesapeake Climate Action Network.
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