Cove Point On The One-yard Line

lizardgossypibomaManagement

Oct 28, 2013 (3 years and 9 months ago)

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Cove Point On The One
-
yard Line

WVONGA Fall Meeting

September 11, 2013


Dominion Profile

Power and Natural Gas Infrastructure

2

27,500 MW
of electric
generation

6,300
miles
of electric transmission

11,000
miles
of natural gas transmission,
gathering
and storage pipeline

947 billion
cubic feet
of natural gas

storage
operated

Cove
Point LNG Facility

2.4
million
electric customers in VA and NC

1.3
million
natural gas customers in
OH & WV

2.1
million
non
-
regulated
retail customers

in
15
states (not shown)

Leading provider of energy and energy services in the Midwest,
Northeast and Mid
-
Atlantic regions of the U.S

OH

VA

NC

IL

IN

PA

MA

CT

RI

MD

WV

WI

NY

Cove Point Liquefaction Project




$3.4
-
$3.8 billion



Tolling facility


Long
term

capacity
contracts with:


Sumitomo Corp. (Japan)


GAIL (India)



One liquefaction train



Liquefaction capacity


750 MMCFD inlet


~ 5 mtpa LNG output



3

Cove Point Export Project: Domestic
Benefits


Jobs


7,000 Short Term


14,600 Long Term




U.S.
trade imbalance


Reduce
it by $2.8
to $7.1
billion/year


Source: ICF International


Government revenue


Almost $1.0 billion/year


Up to $40 million in annual
property taxes in Calvert
County, MD


4

5

What Does it Mean to U.S. Workers?

Major Milestones in DOE Approval Process

September 2010

Sabine Pass

application filed

May 2011

DOE approves

Sabine Pass

October 2011

Cove Point

application filed

November 2011

DOE calls “time
-
out”

for two studies

January 2012

DOE releases EIA

Pricing Study

December 2012

DOE releases Macro
-
economic study

May 2013

DOE approves

Freeport

August 2013

DOE approves

Lake Charles

7

A Window of Opportunity

Proposed NA LNG Export Projects


Cove Point LNG (1 bcfd)



Freeport LNG (up to 2.8
bcfd
)

Sabine Pass LNG (2.2
bcfd
)
DOE approved


Lake Charles LNG (2
bcfd
)**


Cameron LNG (1.7 bcfd)

Kitimat LNG (up to 1.3 bcfd
)

LNG Canada (up to 3.2 bcfd)

Pacific NW LNG (approx. 1
bcfd
)


Jordan Cove (.8 bcfd
1
)

Total US: Approx.

Bcfd
*

NON
-
FTA Under Consideration

Total US Applications (FTA/Non
-
FTA) Approx. 29.41
Bcfd
*

Total North America (FTA/Non
-
FTA + Canada) Approx.
35.71

Bcfd
*


Gulf Coast LNG (2.8
bcfd
)

US Department of Energy

. Gulf LNG (1.5
bcfd
)

.

Southern

LNG

(
.
5

bcfd
)


Excelerate

FLNG (1.38
bcfd
)

Both FTA and Non
-
FTA approved

FTA approved, Non
-
FTA filed

FTA & Non
-
FTA awaiting approval

FTA only filed


Oregon LNG (1.25
bcfd
)

Main Pass Energy Hub (3.22
bcfd
)

Goldboro

LNG (.7 bcfd)



Golden Pass LNG (2.6
bcfd
)


Total includes, SB Power, Waller LNG, and
Gasfin

LNG, small scale projects of less than .2
bcfd

(see table).


**
Trunkline
/Lake Charles LNG filed have both filed for 2
bcfd

at Lake Charles, but total project will not exceed 2
bcfd

1

Jordan Cove applied for 1.2
bcfd

FTA and .8
Bcfd

Non
-
FTA


Corpus Christi LNG (2.1
bcfd
)


STX

LNG (
Pangea
) (1.09
bcfd
)


CE FLNG (1.07
bcfd
)

Magnolia LNG (.54
bcfd
)

.

Carib

Energy

(<
.
03

bcfd
)

BC LNG ( approx. .2
bcfd
)

8


A permanent price advantage for U.S. consumers



Tens of thousands of short
-
term & long
-
term jobs



Billions of $ for federal, state, and local coffers



Bolsters the manufacturing renaissance



Avoids the “boom and bust” cycle



Assures the production of gas liquids for petrochemical industry



Advances U.S. geopolitical interests


9

The Case is Overwhelming


2013
--

DOE approval



2014
--

Federal Energy Regulatory Commission approval



2014
--

Begin construction



2017
--

Commence operation

10

What Next?

President Obama Supports


“It’s true that because of the extraordinary advances in technology
that we’ve made in the United States, we are likely to be a net
natural gas exporter as soon as 2020.”

-

President Obama, Business Leaders Forum in Costa Rica, May 6, 2013