(Reuters) - Virginia energy company Dominion Energy Inc said Tuesday its $4 billion Cove Point liquefied natural gas export facility in Maryland was about 96 percent complete and was expected to enter service by the end of the year.
“We can’t say exactly when it will happen but it is on track to be in service on schedule by the end of the year,” Dominion spokesman Karl Neddenien told Reuters.
Once in service the project will be able to produce about 5.25 million tonnes per year (MTPA) of LNG. That is equal to about 0.7 billion cubic feet of gas per day (bcfd).
Dominion has sold the project’s capacity for 20 years to a subsidiary of GAIL (India) Ltd and to ST Cove Point, a joint venture between units of Japanese trading company Sumitomo Corp and Tokyo Gas Co Ltd.
Some of the LNG going to ST Cove Point will go to Tokyo Gas and some will go to Kansai Electric Power Co Inc, Sumitomo’s Pacific Summit Energy (PSE) LLC unit said on its website.
PSE in 2013 agreed to buy 0.35 bcfd of gas from Cabot Oil & Gas Corp’s production in the Marcellus shale in Pennsylvania and West Virginia for 20 years once Cove Point enters service.
Reporting by Scott DiSavino; Editing by James Dalgleish