Dominion Expects to Receive Shale Gas Export Permit in 2012

stamp of approvalLast September, Dominion Resources filed an application with the Department of Energy (DOE) to begin exporting liquefied natural gas from its Cove Point terminal in Maryland—up to 1 billion cubic feet of gas per day (see this MDN story). Dominion Resources CEO Thomas Farrell said last Friday he believes the permit will be issued later this year.

Dominion’s Cove Point liquefied natural-gas terminal was originally built to receive natural-gas imports. But with the U.S. boom in natural-gas production, Dominion, Cheniere Energy Inc. (LNG) and other companies have sought to modify their terminals to export natural gas abroad, where prices and demand are higher.

"With all the gas that’s available in this country now, particularly in this region, we think it’s likely the permit will be issued [and] we expect to have it later this year," Dominion Chairman and Chief Executive Thomas Farrell said during a conference call with analysts to discuss fourth-quarter earnings.

Last autumn, the company applied with the U.S. Department of Energy to export up to 365 billion cubic feet of natural gas from the terminal, and has been in discussions with potential customers in Europe and Asia, and with U.S. natural-gas producers, about deals, Farrell said.*

*World Oil/Dow Jones (Jan 29, 2012) – Dominion Resources expects LNG export permit in 2012 for Marcellus, Utica gas