Dominion Cove Point LNG Certificate Application Raises Protests from Shippers and Environmental Groups

Shell NA LNG LLC (Shell) and BP Energy Company (BP) filed protests against Dominion Cove Point LNG’s (Cove Point) FERC application to construct LNG liquefaction and export facilities at its existing LNG import terminal in Lusby, Md. Shell alleges that Cove Point has not demonstrated (1) that the proposed export project will not degrade the services that Shell currently takes from Cove Point, and (2) that existing customers will not subsidize the costs of the export project. BP alleges unduly preferential conduct stating that Cove Point provided its existing customer Statoil Natural Gas LLC with a unique opportunity to turn back its import capacity, while BP was not offered such an opportunity. BP also protested Cove Point’s proposed tariff revisions and requested that FERC require Cove Point to resubmit the tariff proposal after FERC has cured BP’s discrimination allegation. Shell’s protest can be found here and BP’s protest can be found here.

A coalition of environmental groups, including EarthReports, Inc. (dba Patuxent Riverkeeper), Potomac Riverkeeper, Inc., Shenandoah Riverkeeper, Sierra Club, and Stewards of the Lower Susquehanna, Inc., also filed comments opposing the export project, alleging that approval will increase industrial activity and pollution in impaired waters, sensitive wetlands, and intact forest in Maryland and Virginia, and will induce upstream gas production and associated pollution in shale gas regions to the north. The groups asked FERC to prepare a comprehensive environmental impact statement for the project. The comments can be found here. The complete docket for the Cove Point project can be found on eLibrary by searching for Docket No. CP13-113.