The first shipment of LNG cargo extracted from the Cove Point terminal of Dominion Energy Inc., located in Maryland on the East Coast of the United States, left aboard the Adam LNG, of 16,000 cubic meters, with direction to the Suez Canal, Egypt.
Cove Point is the second LNG export plant in the United States after the Sabine terminal, located in Louisiana, of Cheniere Energy Inc., which exported its first LNG cargo in February 2016.
This first LNG cargo from Dominion Energy represents the first export of natural gas extracted on the East Coast of the United States for commercial purposes. The company said the facility was finally poised to send gas under long-term contracts after more than three years of construction, joining Cheniere Energy Inc.’s Sabine Pass terminal.
The start of Cove Point’s LNG cargo exports accelerate the emergence of the United States as a powerhouse in the gas market and is expected to be able to compete with Australia and Qatar for the global fuel market within the next five years. Three other export terminals could open on the Gulf Coast in 2019.
Cove Point’s location could give the U.S. an advantage in the gas export market to Europe. Dominion has contracts to sell gas cargo to GAIL India Ltd. and a joint venture with Sumitomo Corp. and Tokyo Gas Co.
This shipment of LNG cargo will be sent at the end of April and will be received by Tokyo Gas Negishi LNG at a terminal located in Kanagawa prefecture. According to Sumitomo, Cove Point will export 1.4 million tons per year, while 0.8 million tons per year will be sent to Kansai Electric Group.
It is expected that this shipment of LNG cargo will lower fuel prices because it coincides with exports of the same combustible made from Papua New Guinea, a country that had closed its LNG production plant after a powerful earthquake.
With information from: