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Dominion signs 20-year deals with Japan, India

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Staff writer ▼ | April 2, 2013
Energy producer and transporter Dominion reached three major milestones in its Dominion Cove Point LNG liquefaction project; among them there are 20-year terminal service agreements.
Dominion
DominionEnergy producer and transporter Dominion reached three major milestones in its Dominion Cove Point LNG liquefaction project; among them there are 20-year terminal service agreements.


The company has fully subscribed the marketed capacity of the project with signed 20-year terminal service agreements. Pacific Summit Energy, a U.S. affiliate of Japanese trading company Sumitomo Corporation, and GAIL Global (USA) LNG, a U.S. affiliate of GAIL India, have each contracted for half of the marketed capacity. Sumitomo in turn has announced agreements to serve Tokyo Gas Co. and Kansai Electric Power Co.. GAIL is the largest natural gas processing and distributing company in India.

Dominion has awarded its engineering, procurement and construction (EPC) contract for new liquefaction facilities to IHI/Kiewit Cove Point, a joint venture between IHI E&C International Corporation of Houston and Kiewit Corporation of Omaha, Neb., following completion of the front-end engineering and design (FEED) work.

The company will submit its application to the Federal Energy Regulatory Commission (FERC) for the $3.4 billion to $3.8 billion project. The filing is more than 12,000 pages and considers all aspects of the project, including safety, environment, security, cost, community effects, and benefits.

The benefits of the project are expected to be far-reaching in terms of creating jobs and supporting the local, state and national economy. A study has shown that up to 4,000 jobs would be produced in the state of Maryland during the construction phase. Benefits to the natural gas and other industries would support another 14,600 jobs once the facility enters service.

The project would produce an estimated $9.8 billion in royalty payments to mineral owners over 25 years. And, about $1 billion annually of additional federal, state and local government revenues would be generated directly and indirectly.


 

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