Dominion will move forward with engineering, marketing and
regulatory review processes, the company said on
Monday, after a declaratory judgment confirmed its right
to build liquefaction facilities at its Cove Point
facility on the Chesapeake Bay in Lusby, Md.
Circuit Court Judge James P. Salmon of Maryland ruled Friday
that Dominion Cove Point's agreement with environmental
agencies allows it to build liquefaction facilities inside the plant's fenced
area and export liquefied natural
The environmental group Sierra Club had maintained
Dominion needed its permission to build the facilities.
"Dominion has made considerable progress towards a project that will bring jobs and
revenues to the national and local economies," said Thomas F.
Farrell II, president, CEO and chairman of
"We have received support from business, labor, government,
community and environmental groups for a major construction project that would bring great
benefits to many people. We look forward to working with the
Sierra Club and other involved environmental groups to continue
the outstanding record of environmental cooperation at Dominion
The liquefaction project is expected to cost between
$2.5 billion and $3.5 billion.
Dominion has received permission from the Department of
Energy (DOE) to act as an agent for liquefied natural
gas exports to countries with free trade agreements and is
waiting for DOE action on its application for countries without
a free trade agreement.
Dominion has entered the Federal Energy Regulatory Commission's
pre-filing process in anticipation of filing an application in
Engineering studies are continuing and are expected to be
completed soon. Terminal services agreements are under
negotiation with potential customers, including Sumitomo Corp.,
a major Japanese trading company.