Dominion Cove Point LNG History and Current Status

Cove Point LNG has a rich history that dates back to the 1970s, when construction began on the facility in 1976.

The first shipment of liquefied natural gas (LNG) from Cove Point was sent to the United States in 1980, marking a major milestone for the facility.

The facility was initially designed to import LNG from Algeria, and it has been in continuous operation since its first shipment.

In 2017, Dominion Energy acquired Cove Point LNG from Sempra Energy for $4.3 billion, expanding the company's presence in the natural gas market.

Cove Point LNG has a long history of safe and reliable operation, with a strong focus on environmental stewardship and community engagement.

The Dominion Cove Point LNG facility has a rich history dating back to 1972 when it was originally certified for importing Algerian LNG.

It began receiving LNG from Algeria between 1978 and 1980, marking the start of its operations.

A major incident occurred on October 6, 1979, when LNG vapors leaked from a pump and exploded, resulting in one death and one critical injury.

The facility was transformed in 1994 to store domestic natural gas, and a liquefaction unit was installed to cool natural gas to around -162 °C (-260 °F).

The facility continued to use the original LNG storage tanks and gasifier units, and both storage and import activities are regulated by the Federal Energy Regulatory Commission (FERC) under the Natural Gas Act.

In 2001, parties agreed to resume imports at the facility, and following the construction of a fifth LNG storage tank, imports resumed in the summer of 2003.

Imported LNG suppliers include BG LNG, Shell LNG, and Statoil, which hold a significant portion of the facility's capacity.

The Dominion Cove Point LNG facility is a significant player in the energy industry, and its expansion has been a major development in recent years.

The facility's expansion to export LNG was filed with the FERC in April 2013, with an estimated cost of $3.4 billion to $3.8 billion.

The export project was completed in early 2018, making the facility bidirectional, capable of both importing and exporting LNG.

The facility now has the capacity to handle 1.8 billion cubic feet of natural gas per day, a significant increase in its capabilities.

In 2020, Berkshire Hathaway Energy took a 25 percent stake in the facility, marking a notable shift in its ownership structure.

Dominion Energy and Brookfield share non-operational ownership of the facility, with Dominion holding 50% and Brookfield holding 25%.

The Cove Point facility is a model of environmental responsibility, situated on 1,000 acres with only 15% of the site used for operations, leaving the rest in permanent conservation.

Cove Point has implemented a rigorous leak detection and repair program, earning it numerous awards for environmental stewardship.

The facility has achieved LEED Certification, a first for Calvert County, Maryland, and has reduced its energy consumption by 32% and water usage in restrooms by 40% compared to similar facilities.

A devastating storm in 2008 caused significant damage to the Cove Point Marsh, a 190-acre Maryland Heritage Area, but a massive restoration effort ensued, involving 33,000 tons of rock and 10,000 tons of sand to create a 2,600-ft revetment and restore the ecosystem.

Cove Point's commitment to environmental stewardship has been recognized with the National Environmental Excellence Award and the "Hero of the Chesapeake Bay" award.

The Dominion Cove Point LNG plant has been at the center of several controversies over the years.

One major concern was the proximity of the plant to the Calvert Cliffs Nuclear Power Plant, which raised fears of potential damage from an attack or explosion.

Local residents were worried that the FERC didn't consider these risks before reopening the plant in 2001.

Washington Gas Light Company, a local gas utility, complained in 2005 about the "hot" gas received from Cove Point, which had a higher heat content than domestic natural gas.

The parties agreed to limit the heat content of the output to 1075 Btu per ft by diluting it with nitrogen gas.

This change led to a 16-fold increase in gas leaks on residential service connections in Prince George's County, Maryland.

The Cove Point LNG terminal has been at the center of several controversies over the years. One major concern was raised in 2001, when local residents were worried about the plant's proximity to the Calvert Cliffs Nuclear Power Plant, just 3 miles away.

This proximity led to fears of potential damage from an attack or explosion at the plant. Residents felt that the Federal Energy Regulatory Commission (FERC) didn't adequately consider these risks before reopening the plant.

In 2005, a local gas utility, Washington Gas Light Company, complained that the LNG from Cove Point was causing problems for its customers. The gas was found to have a higher heat content than domestic natural gas, which led to the parties agreeing to limit its heat content by diluting it with nitrogen gas.

The heat content was limited to 1075 Btu per ft, or 40.05 MJ/m, as a result of this agreement. This change was intended to alleviate the issues caused by the "hot" gas.

However, Washington Gas Light later experienced a significant increase in gas leaks on residential service connections in Prince George's County, Maryland. These leaks were attributed to the Cove Point gas causing the rubber gaskets in the mechanical couplings to dry out and leak.

A rate increase proposal was filed by Cove Point in 2006, seeking to raise prices for pipelines serving customers in Georgia, North Carolina, Virginia, and Maryland by 109 percent.

Offtake Agreements are a crucial part of the Cove Point Project's business model. The project has long-term contracts with Gail India and a joint venture involving Japan's Sumitomo and Tokyo Gas.

One of these joint ventures, ST Cove Point, was established in February 2014 to carry out contracted natural gas liquefaction processing and LNG sales for the Cove Point Project.

ST Cove Point procures natural gas from Pacific Summit Energy, a wholly-owned subsidiary of Sumitomo Corporation.

It will export approximately 2.3 million tonnes per year (MTPA) of the produced LNG annually for 20 years.

According to the Heads of Agreement, 1.4MTPA is to be delivered to TG Plus, a wholly-owned subsidiary of Tokyo Gas.

Another 0.8MTPA will be delivered to Kansai Electric Power via Sumitomo Corporation.

Dominion Cove Point LNG has undergone significant changes in ownership over the years.

The facility was initially acquired by Dominion Energy from Williams in 2002.

In 2020, Berkshire Hathaway Energy took over the operatorship of Cove Point and acquired a 25% stake in the facility as part of a larger transaction.

Berkshire Hathaway Energy solidified its control over Cove Point by purchasing Dominion Energy's 50% partnership stake in the facility in 2023.

This $3.3 billion transaction gave Berkshire Hathaway Energy a total ownership interest of 75% in the asset, with the remaining 25% held by a subsidiary of Brookfield Infrastructure Partners.

Berkshire Hathaway Energy acquired a 25% stake in the Cove Point LNG facility in November 2020, taking over the operatorship with the closure of the deal.

The Cove Point LNG facility is located in Lusby, Maryland, and is a liquefied natural gas terminal and pipeline.

Berkshire Hathaway Energy purchased Dominion Energy's 50% partnership stake in the Cove Point LNG facility in July 2023, giving the company a total ownership interest of 75%.

A subsidiary of Brookfield Infrastructure Partners holds the remaining 25% limited partnership interest in Cove Point LNG.

BHE GT&S, a Berkshire Hathaway Energy business unit, is the general partner and operator of the Cove Point natural gas pipeline and its liquefied natural gas terminal.

Cashman Dredging was contracted to remove 110,000 cubic yards of silt and sand material in March 2010. This was a significant task that required careful planning and execution.

Audubon served as the owner’s engineer and managed the front-end engineering and design (FEED) for the Cove Point liquefied natural gas (LNG) project. They played a crucial role in ensuring the project's success.

GE Oil & Gas received contracts in April 2013 to supply gas compression trains for Cove Point LNG in Lusby. Two Frame 7EA DLN1 gas turbine packages were supplied to drive the GE refrigeration compressors.

A joint venture between IHI E&C International Corporation and Kiewit Energy Company entered into an engineering, procurement, and construction (EPC) contract in April 2013. This joint venture aimed to develop a 5.25MMTPA LNG export facility.

Kiewit's scope of work included tie-ins to the existing facility, relocating existing infrastructure, and adding a 130MW power plant. They also installed 678 drilled shafts for various soundwall, equipment, and pipe rack foundation.

McDermott was awarded a contract for the Cove LNG expansion project. Their scope of work included 800 million standard cubic feet per day (SCFD) regasification and send-out process equipment, gas turbine generation, and two 160,000 cubic meter LNG storage tanks.

McDermott is also responsible for developing new administration, control, and maintenance buildings, and ancillary systems.

The Cove Point LNG facility has seven storage tanks, with four operational since 1978, one in 2004, and another in 2008.

The existing LNG export facility uses GE Frame 3 and Solar Titan combustion turbines.

One LNG liquefaction train is part of the facilities at Cove Point LNG, consisting of gas treatment equipment and natural gas-fired turbine-driven refrigerant compressors.

The facility also includes waste heat recovery systems, fire and gas detection and safety systems, and control systems.

After expansion, the Cove Point facility can perform all the functions of an LNG facility, including import, export, vaporization, and liquefaction.

GE's technology leadership in the LNG space is strengthened by its outage excellence, which is the capability to provide highly specialized maintenance services for LNG plants that increase uptime while optimizing operational efficiency.

GE Oil & Gas has a proven track record as an innovative provider of mission-critical equipment for the LNG sector, enabling its customers to meet industry challenges from the largest LNG train compressors to MicroLNG plants for remote locations.

GE's technology being supplied to Dominion consists of GE's MS7001 EA industrial gas turbines, which feature DLN technology and provide 86-megawatt ISO shaft power while reducing emissions.

The technology being supplied to Dominion includes two Frame 7EA DLN1 (Dry Low NOx) gas turbine packages to drive the GE refrigeration compressors, which will have the capacity to produce approximately 5.25 million metric tons per annum of LNG.

GE's Frame 7 DLN accepts a wide range of fuel and has more than 500 units in the DLN fleet, making it a reliable and efficient choice for LNG projects.

GE's customized service solutions, training programs, and technologies partner with customers to maximize their efficiency, productivity, and equipment reliability, and fully benefit from the megatrends of natural gas, the growth of subsea and hard-to-reach reserves, and the revolution in asset health management.