Vessel Docks at Maryland Cove Point LNG Terminal
The Gemmata liquefied natural gas tanker docked at Dominion Energy Inc's Cove Point LNG export facility in Maryland on Monday, which is expected to enter service by the end of March, according to Reuters shipping data:
Gemmata could be the first vessel to pick up fuel from the facility since the tanker came from Spain - a non-LNG exporting country - with less than a full cargo, according to the shipping data. Dominion said it planned to spend $4 billion to add export facilities at Cove Point, long an LNG import terminal on the Chesapeake Bay
In addition to Gemmata, another vessel, the Methane Spirit, is also headed for Cove Point, according to the shipping data. Methane Spirit is located near Singapore and is expected to reach Cove Point around March 31. Once it enters service, Cove Point will be the second big LNG export terminal in the lower 48 U.S. states after Cheniere Energy Inc's Sabine Pass terminal in Louisiana, which exported its first cargo in February 2016
Cove Point is designed to liquefy about 0.75 billion cubic feet per day (bcfd) of gas. One bcfd can power about 5 million homes. In December, Dominion said Royal Dutch Shell Plc (RYDAF) would take the initial LNG cargoes from Cove Point. Dominion sold the project's capacity for 20 years to a subsidiary of GAIL (India) Ltd and to ST Cove Point, a joint venture of units of Japanese trading company Sumitomo Corp (SUMA.BE) 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, according to Sumitomo's Pacific Summit Energy (PSE) unit. PSE agreed in 2013 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
