After six months of deliberation, the U.S. Department of Energy announced today that it has approved Dominion's Maryland Cove Point LNG facility for natural gas exports to non-Free Trade Agreement countries.
"We agree with the DOE's decision that exports are expected to bring economic benefits to the country," said Dominion Chairman, President, and CEO Thomas Farrell II in a statement today. "It is good news on many fronts, including the thousands of jobs that will be created, the boost in government revenues that will result, and the support it provides to allied nations. Dominion Cove Point is an ideal location for a cost-effective and environmentally compatible export facility. Dominion is dedicated to constructing a safe and reliable facility that is an asset to the community, state, and country."
The green light for Dominion is only the fourth such approval for U.S. facilities, and will allow the utility to export up to 0.77 billion cubic feet of natural gas a day. Dominion expects to spend $3.4 billion to $3.8 billion to get its Cove Point facility up and running, and capacity is already fully subscribed to Japanese and India buyers under two 20-year terminal service agreements.
Dominion will break ground on its newest project in 2014, with operations up and running in 2017.
The article Dominion Approved for LNG Exports to Non-Free-Trade Countries originally appeared on Fool.com.Fool contributor Justin Loiseau has no position in any stocks mentioned. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo. The Motley Fool recommends Dominion Resources. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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