cove point on the one-yard line wvonga fall meeting september 11, 2013
TRANSCRIPT
Cove Point On The One-yard Line
WVONGA Fall MeetingSeptember 11, 2013
Dominion ProfilePower and Natural Gas Infrastructure
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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
MACT RI
MD
WV
WINY
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
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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
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What Does it Mean to U.S. Workers?
Major Milestones in DOE Approval Process
September 2010Sabine Pass
application filed
May 2011DOE approves
Sabine Pass
October 2011Cove Point
application filed
November 2011DOE calls “time-out”
for two studies
January 2012DOE releases EIA
Pricing Study
December 2012DOE releases Macro-economic study
May 2013DOE approvesFreeport
August 2013DOE approvesLake Charles
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A Window of Opportunity
Proposed NA LNG Export Projects
3. Cove Point LNG (1 bcfd)
1. , 4. Freeport LNG (up to 2.8 bcfd)
Sabine Pass LNG (2.2 bcfd) DOE approved
2. Lake Charles LNG (2 bcfd)**
5. 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)
6. Jordan Cove (.8 bcfd1)
Total US: Approx. 28.02 Bcfd* NON-FTA Under ConsiderationTotal US Applications (FTA/Non-FTA) Approx. 29.41 Bcfd*
Total North America (FTA/Non-FTA + Canada) Approx. 35.71 Bcfd*
11. Gulf Coast LNG (2.8 bcfd)
US Department of Energy
13. Gulf LNG (1.5 bcfd)
12. Southern LNG (.5 bcfd)
9. Excelerate FLNG (1.38 bcfd)
Both FTA and Non-FTA approvedFTA approved, Non-FTA filedFTA & Non-FTA awaiting approvalFTA only filed
7. Oregon LNG (1.25 bcfd)
Main Pass Energy Hub (3.22 bcfd)
Goldboro LNG (.7 bcfd)
15. 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 bcfd1 Jordan Cove applied for 1.2 bcfd FTA and .8 Bcfd Non-FTA
8. Corpus Christi LNG (2.1 bcfd)
16. STX LNG (Pangea) (1.09 bcfd)
14. CE FLNG (1.07 bcfd)
Magnolia LNG (.54 bcfd)
10. Carib Energy (<.03 bcfd)
BC LNG ( approx. .2 bcfd)
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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
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The Case is Overwhelming
2013 -- DOE approval
2014 -- Federal Energy Regulatory Commission approval
2014 -- Begin construction
2017 -- Commence operation
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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