In Depth: Dominion Breaks Ground on the Cove Point Expansion Project
Dominion hosted a groundbreaking ceremony on October 5 for the expansion of the Cove Point LNG terminal. The expansion will increase Cove Point’s capacity by 800 MMcf, bringing the terminal’s total capacity to 1.8 Bcf/day. According to the terms of a 20-year agreement, Statoil Natural Gas LLC will hold all of the terminal’s expansion capacity. Dominion and Statoil company representatives and government officials addressed attendees, all commenting on the importance of the expansion project to both global and U.S. natural gas markets.
Gary Sypolt, President of Dominion Transmission, said that the Cove Point terminal will be instrumental in helping to meet the demand for LNG, which he described as “breathtaking.” Sypolt also reinforced Dominion’s commitment to customer service and to the Cove Point Trust, an environmental foundation dedicated to preserving the natural resources surrounding the terminal. Commenting on Dominion’s relationship with Statoil, Sypolt noted that Statoil is a “forward looking company” dedicated to safety and the preservation of the environment. Rune Bjornson, Executive Vice President for Statoil, said that the expansion project “demonstrates our commitment to the U.S. gas market” and exemplifies the company’s philosophy to engage in projects that cause “zero harm to the environment.”
Jim Slutz, Deputy Assistant Secretary of the Department of Energy, spoke on the importance of the expansion project to the global natural gas market, praising Statoil’s commitment to the project and for its environmentally friendly reputation. Reinforcing the importance of the expansion on job creation, James Rzepkowski, Maryland’s Assistant Secretary of Commerce, said that the Cove Point project creates employment opportunities for Maryland residents and helps the state remain competitive in global markets. Citing the benefits of the expansion project and reflecting upon the benefits that the Cove Point terminal has bestowed on the local community, Calvert County Board of Commissioners President David P. Hale, highlighted the facility’s 30-year safety record, its commitment to preserving 800 acres of land in the county, and its role as a respectable corporate citizen.