TribLIVE

| Business


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Dominion signs deal with India for gas exports

Email Newsletters

Click here to sign up for one of our email newsletters.

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

Daily Photo Galleries

Business Photo Galleries

From Staff and Wire Reports
Tuesday, April 2, 2013, 12:01 a.m.
 

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.

Subscribe today! Click here for our subscription offers.

 

 


Show commenting policy

Most-Read Business Headlines

  1. Chevron settles fatal well fire lawsuit for $5 million
  2. Task force to plot ways of easing gas glut in Pennsylvania via pipelines
  3. IRS cybersecurity breach touches lives of homebuyers, others
  4. Pitt study suggests health law attracting young to balance insurers’ risks
  5. UPMC offering buyouts to 3,500 employees in cost-cutting move
  6. Shoppers pay premium for organic chicken
  7. Many Americans have no retirement savings, Fed survey shows
  8. This robot is cute, artificially intelligent and employed
  9. Automakers do U-turn on infotainment systems
  10. Tesla home battery at $7K, partnered with rooftop solar system, may help reduce power bills
  11. Exxon, Chevron shareholders reject big oil restrictions