The Federal Energy Regulatory Commission (FERC) authorized Dominion Cove Point LNG, LP to build the $3.4 billion Cove Point Liquefaction Project in Calvert County, Maryland, and related facilities at an existing compressor station and at metering and regulating sites in Virginia. The FERC’s September 29 action came after more than two years of consideration.

The project will enable Dominion to transport up to 860,000 dekatherms per day of natural gas from existing pipeline interconnects near the west end of the Cove Point Pipeline to the Cove Point terminal for the export of up to 5.75 metric tons of liquefied natural gas per year. The FERC decision found that the proposal, as mitigated with nearly 80 conditions, is in the public interest.

Dominion Cove Point proposes to complete construction of the liquefaction project so that facilities may start service in June 2017. Construction of the related Virginia facilities would begin in 2016 and would be placed in service by March 2017. The U.S. Department of Energy has already approved Dominion Cove Point’s export of gas to both Free Trade Agreement and non-Free Trade Agreement countries.

FERC has approved three other LNG export projects, all in the Gulf of Mexico: the Sabine Pass Liquefaction Project, the Freeport LNG Project and the Cameron LNG Project. Fourteen LNG export proposals are pending.

Dominion says it must review and accept the order. It expects to file an implementation plan describing how it will comply with the order and also will the FERC for a "Notice to Proceed." Once that notice is receiced, it plans to begin construction. Dominion says this process – from its review through FERC's notice – could take several weeks.

The American Petroleum Institute says it welcomed the FERC decision. “Cove Point represents an exciting opportunity to create thousands of jobs in Maryland and extend the economic benefits of America’s energy revolution,” says API Director of Upstream and Industry Operations Erik Milito in a news release. “It’s only the fourth project to receive FERC approval and the first East Coast facility primed to play a critical role in securing America’s trade advantage as the world’s top natural gas producer.”