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FERC asks Dominion how higher CO2 gas would affect Cove Point LNG

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FERC asks Dominion how higher CO2 gas would affect Cove Point LNG

FERC staff asked Dominion Resources Services Inc. to explain how a plan to allow gas with higher CO2 levels to be delivered and received by the Cove Point LNG LP terminal would affect the liquefaction facilities and existing LNG import terminal in Maryland.

Dominion Cove Point LNG LP on Nov. 23, 2016, submitted to the commission a proposal to adopt "less restrictive gas quality specifications" that would permit higher levels of CO2 and combined nonhydrocarbon gases. "This change will allow DCP to be as flexible as possible in accepting gas from its three interconnecting pipeline systems, [Transcontinental Gas Pipe Line Co. LLC, Columbia Gas Transmission LLC and Dominion Transmission Inc.], which have varying gas quality specifications with respect to CO2 and combined nonhydrocarbon gases," the Dominion Resources Inc. company said to FERC.

But FERC's Office of Energy Projects wrote back Jan. 27, asking Dominion to clarify how pretreatment facilities at the LNG terminal would accommodate higher CO2 levels and whether there would need to be design changes for the terminal, since the proposed increase "would be above the design basis" of Cove Point's authorization. A spokesman for Dominion said that even with higher CO2 levels, the gas would still be of the quality needed for LNG.

Dominion Cove Point is developing the nearly $4 billion Cove Point LNG export project at an existing LNG import terminal in Lusby, Md., on the western side of the Chesapeake Bay. The project is 84% complete and is expected to enter service in late 2017, Dominion executives said during the company's fourth-quarter earnings call. (FERC dockets RP17-197, CP13-113)