By DAVID BIRD
NEW YORK -- The Energy Department said Thursday it has
granted conditional approval for Dominion Cove Point LNG to
export domestically produced liquefied natural
gas to countries that don't have a free-trade agreement
with the US.
Subject to environmental review and final regulatory
exports at a rate of up to 770 million cubic feet/day of natural
gas for a period of 20 years will be allowed from
a terminal located in Calvert County, Maryland, that is one of
the nation's largest LNG
The move follows prior approval on Oct. 7, 2011, for LNG
exports from the facility to countries which have a free-trade
agreement with the US. The decision comes as US gas output is
growing to record levels.
The Energy Information Administration, the independent
statistical and analytical wing of the Energy Department, projects gas output will climb to a
record 70.42 billion cubic feet/day in 2014, a rise of 14.8%
from five years earlier.
Dominion Resources said its proposed liquefaction facilities for gas export are
expected to cost $3.4 billion to $3.8 billion. The company
filed in March with the Federal Energy Regulatory Commission
for approval of the facilities.
Pending receipt of regulatory approval and
environmental permits, construction is scheduled to begin
in 2014, with an in-service date of 2017.
Dow Jones Newswires