To accommodate its customers and the recent advances in LNG ship technology, Dominion Cove Point LNG is planning to upgrade its existing offshore pier to enable the safe docking, off-loading, and departure from the pier of larger-sized LNG vessels now coming into service worldwide.
The pier modifications will provide greater flexibility for LNG shippers to acquire and schedule LNG cargoes from a variety of supply sources, and provide American consumers with greater access to worldwide supplies of LNG. An adequate supply of natural gas from LNG delivered to Cove Point can help stabilize energy costs for homes and businesses in the Mid Atlantic and Northeast United States. This project also will enable Dominion Cove Point to compete more effectively for LNG supplies and remain competitive with similar terminals throughout the world.
The modifications will enable Dominion Cove Point to receive vessels carrying larger cargoes than the current maximum capacity. Currently, vessels with a capacity of no greater than 148,000 cubic meters can be handled. The modifications will allow Dominion Cove Point to receive vessels carrying cargoes of up to 267,000 cubic meters. To the extent that Dominion Cove Point shippers opt to use the larger vessels, they could deliver comparable quantities of LNG using fewer ships; however, even after the pier is reinforced, the terminal will remain capable of receiving the types of ships that are in use today.
The Pier Reinforcement Project will result in:
With the proposed modifications, there is a possibility of fewer ships arriving at Dominion Cove Point due to larger carrier size and more efficient transport.
The current unloading rates of the Cove Point Terminal, as listed in DCP’s FERC Gas Tariff Sheet, are an average of 10,200 cubic meters per hour and a maximum of 12,000 cubic meters per hour. The unloading rates will not change with this proposed project.
The project is scheduled for construction to begin in late summer 2009 and for the project to be completed and in service in the spring of 2011.
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