AAEA supports the Cove Point LNG export terminal proposal. Cove Point is an import facility for liquefied natural gas. The market for bringing LNG into the country has dwindled as fracking fueled a natural gas boom in the U.S. The project would enable Dominion to export roughly 5.75 million metric tons of LNG each year.
|Cove Point LNG Facility|
The Environmental Assessment examined the potential impacts of the proposed project, including a thorough evaluation of the project's impact on public safety, air quality, water resources, geology, soils, wildlife and vegetation, threatened and endangered species, land and visual resources, cultural resources, noise, cumulative impacts and reasonable alternatives.
Cove Point is the fourth liquefied natural gas export project to receive an environmental document from the FERC. The cooperating agencies that participated in the FERC Environmental Assessment for the Cove Point export project were: the Department of Energy; the Army Corps of Engineers; the Department of Transportation, including the Pipeline and Hazardous Materials Safety Administration; the Coast Guard; and the Maryland Department of Natural Resources.
The project will need Department of Energy approval to ship LNG to nontrade agreement countries, will need Maryland Public Service Commission approval to build a 130 megawatt power plant to provide the energy needed to liquefy the natural gas and various other federal (RCRA) and state permits (Clean Air Act, Clean Water Act) in order to begin operation.
The Department of Energy’s approval of a license allowing Dominion Power to expand its Cove Point facility to export liquefied natural gas (LNG) to nations that aren’t party to U.S. free-trade agreements was approved on September 11, 2013.
Political support for the project is mixed with Maryland's two senators, Barbara Mikulski and Ben Cardin opposing the project and Congressman Steny Hoyer supporting the project.
There are estimates that expanding Dominion's Calvert County complex to allow exporting would cost as much as $4 billion. The company would pay an additional $40 million in annual property taxes for five years, then receive a tax break of 42 percent for nine years.
The Calvert County Board of County Commissioners estimated that if the Dominion Cove Point LNG facility in Lusby, Maryland is approved, it is expected to bring 3,000 jobs to Maryland at the peak of construction and promises to be one of the largest construction projects in Maryland’s history.
Dominion has hired IHI/Kiewit Cove Point, a joint venture of IHI E&C and Kiewit Energy Company, as its engineering, procurement and construction (EPC) contractor. IHI/Kiewit Cove Point will be responsible for the EPC of the new facility. IHI/Kiewit will be providing many opportunities to local, diverse and/or small businesses in the region.
IHI/Kiewit has created a website for suppliers, subcontractors, construction product retailers and local businesses that would like the opportunity to work with IHI/Kiewit on the project. It also includes information about the status of the project and contract awards. (Calvert County,
Additional Information On the Project
Environmental Assessment for the Cove Point Liquefaction Project (May 2014)
Dominion Cove Post Hearing Brief (on 130 megawatt power plant), VanNess Feldman