Dominion signs deal with India for gas exports
Dominion Resources announced an agreement Monday to liquefy up to 2.3 million metric tons of natural gas annually at its planned export terminal in Cove Point, Md., for a U.S. affiliate of GAIL, the largest state-owned natural gas processing and distribution company in India.
Virginia-based Dominion, with offices in Pittsburgh, has booked GAIL Global LNG LLC for half of the 4.6 million metric tons of per annum capacity at the proposed facility for 20 years. The remaining half of the capacity has been sold to a major Japanese firm, Sumitomo.
Dominion hopes to gain all necessary government approvals so it can begin building the liquefaction plant in 2014 and start exporting gas from the current import terminal in 2017. Estimated cost of the proposed facility has risen to between $3.4 billion and $3.8 billion.
“Japan and India are important allies and trading partners of the United States that are in need of secure sources of natural gas, and Sumitomo and GAIL are high-quality companies working to meet those needs,” said Thomas F. Farrell II, chairman, president and CEO of Dominion.
Dominion is one of 25 companies with applications to the federal government to export liquefied natural gas from U.S. terminals, almost all of them along the Gulf Coast. Only Cheniere's application for exports at Sabine Pass in Louisiana near the Texas border has been approved. GAIL has a similar terminal service deal with Cheniere.
If all of the applications pending before DOE were approved, 29.69 billion cubic feet a day of American natural gas — some of it from Marcellus shale fields in Pennsylvania — would be exported overseas, where it is worth more money.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Chevron settles fatal well fire lawsuit for $5 million
- Task force to plot ways of easing gas glut in Pennsylvania via pipelines
- IRS cybersecurity breach touches lives of homebuyers, others
- Pitt study suggests health law attracting young to balance insurers’ risks
- UPMC offering buyouts to 3,500 employees in cost-cutting move
- Shoppers pay premium for organic chicken
- Many Americans have no retirement savings, Fed survey shows
- This robot is cute, artificially intelligent and employed
- Automakers do U-turn on infotainment systems
- Tesla home battery at $7K, partnered with rooftop solar system, may help reduce power bills
- Exxon, Chevron shareholders reject big oil restrictions