A key federal agency gave the go-ahead for Dominion Resources to build a liquefied natural gas (LNG) export facility in Maryland:
Federal officials approved a Maryland liquefied natural gas export terminal late Monday, a move that opposition groups said they would fight.
Dominion Resources secured approval from the Federal Energy Regulatory Commission [FERC] to build the $3.8 billion Cove Point terminal on the Chesapeake Bay, which will be ready to ship up to 0.82 billion cubic feet per day of natural gas beginning in 2017.
"We are pleased to receive this final approval that allows us to start constructing this important project that offers significant economic, environmental and geopolitical benefits," Dominion Energy President Diane Leopold said.
Construction of the Cove Point facility will create 3,000 jobs and add $45 million annually on average to the local economy.
What was originally built to import LNG will, after spending $3.8 billion to retrofit, export natural gas produced from the Marcellus and Utica Shales. Now, the facility will help America feed hungry global energy markets.
Exporting natural gas can create jobs and generate economic growth. An Energy Department-sponsored study found that "the U.S. was projected to gain net economic benefits from allowing LNG exports."
However, a tedious approval process has become a barrier to this opportunity. Twenty-six LNG export applicationsare awaiting federal approval. "By the time US export projects are ready, the world may no longer be waiting," warns Natalie Regoli and Brian Polle of Baker & McKenzie.
In May, FERC concluded that Cove Point would not have major environmental impacts. In 2013, Cove Point receivedconditional permission from the Energy Department to export LNG to non-free trade agreement countries like Japan and India and is awaiting final authorization.