Dominion (D) said Friday that it will move forward with engineering, marketing and regulatory review processes after a declaratory judgment confirmed its right to build liquefaction facilities at its Dominion Cove Point facility on the Chesapeake Bay in Lusby, Md.
Circuit Court Judge James Salmon of Maryland ruled today 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 gas. The Sierra Club had maintained Dominion needed its permission to build the facilities.
The liquefaction project is expected to cost between $2.5 billion and $3.5 billion.
Dominion noted that it has received permission from the Department of Energy or 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 stated that it has entered the Federal Energy Regulatory Commission's pre-filing process in anticipation of filing an application in 2013. Engineering studies are continuing and are expected to be completed soon. Terminal services agreements are under negotiation with potential customers, including Sumitomo Corporation, a major Japanese trading company.
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