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Cove Point's 1st LNG export cargo lands in UK

The first export cargo from Dominion Energy Inc.'s Cove Point LNG terminal has landed in the United Kingdom, according to ship tracking data.

The Gemmata LNG tanker docked at the Port of Milford Haven in Wales early March 21, according to The vessel left the Maryland facility on March 1, making Cove Point the second major operational LNG export terminal in the U.S. to have shipped shale gas abroad. The cargo was shipped under an agreement with a Royal Dutch Shell plc affiliate to provide gas to the Cove Point facility and take volumes of LNG produced prior to the export terminal's official in-service date.

After a delay from a late-2017 in-service date, Cove Point expected to enter commercial service in early March. A Cove Point spokesman said on March 21 that the facility is set to officially enter service "this month." Once in commercial service, GAIL (India) Ltd. and a joint venture between Sumitomo Corp. and Tokyo Gas Co. Ltd. will receive LNG produced at the terminal under 20-year contracts.

The $4 billion export terminal has a capacity of 5.25 million tonnes per annum, equivalent to 8.3 million gallons of LNG per day. With Cove Point online, total U.S. liquefaction capacity will rise to more than 23 mtpa.