Responding to the Need for Additional Natural Gas Supplies
Dominion has received authorization from the Federal Energy Regulatory Commission (FERC) for the Cove Point Expansion Project (read the order). For details about the portions of the project, see the Project Description.
Millions of residents in the region have received the highest home heating bills of their lives because of high and volatile natural gas prices. Natural gas continues to be a fuel of choice for residential, industrial and electric power generator consumers because it is efficient, clean, and reliable.
The Energy Information Administration (EIA) expects the growth of natural gas
use in the United States to continue. However, natural gas production has not
kept pace with demand, and rising natural gas prices reflect the imbalance between
natural gas supply and demand. According to the EIA, natural gas wholesale prices
have more than doubled since 1999.
The Federal Energy Regulatory Commission approved
Dominion’s pre-filing review request
and established Docket Number PF04-15-000. Tetra Tech FW was selected as the
third-party contractor to prepare the environmental impact statement.
Why Cove Point is Expanding
Dominion plans to nearly the double capacity at its Dominion
Cove Point liquefied
natural gas (LNG) plant in order to move more natural gas to consumers in
Mid-Atlantic and Northeastern states where it is in high demand. The expansion
project also includes new pipeline projects to deliver the gas.
With seasonal demands and extreme price volatility, many consumers
have seen their gas bills increase dramatically over the past few years. Dominion
Cove Point is favorably placed and ideally suited to help meet the growing demand
for natural gas.
The most efficient way to transport natural gas across the
ocean is to liquefy it and ship it in specially built tankers. Dominion Cove
Point, located on the Chesapeake Bay in Cove Point, Maryland, south of Baltimore,
is strategically located where it can receive LNG tankers, store the LNG onshore,
then transform it back to gas when it is needed to meet demand.
Dominion has received approval from the Federal Energy Regulatory
Commission
to increase the plant's daily output capacity from 1 billion
cubic
feet (Bcf) per day to 1.8 Bcf per day. Storage capacity at the terminal will
increase to about 14.5 Bcf. One Bcf of natural gas is enough energy for about
3.4 million homes each day. Dominion Cove Point now has 7.8 Bcf of LNG tank
storage.
The expansion project will add two storage tanks, bringing
the total number at the site to seven. In addition, the expansion project will
add two electric generator units to the existing three units.
Dominion has received approval from the Federal Energy Regulatory Commission (FERC) to begin construction activities on expansion facilities at the Cove Point LNG Terminal (read the letter). Read the news release about the groundbreaking.
Dominion Cove Point plans to expand its pipeline
in Maryland to deliver more natural gas to interstate pipeline connections
in
Virginia. Dominion Transmission would build a new pipeline, a pipeline extension,
two pipelines parallel to existing lines and two compressor stations in Pennsylvania
to move natural gas to customers throughout the Northeast.
These pipeline projects are key to delivering new gas supplies
to where they are needed in the Mid-Atlantic and Northeast. The Maryland project
will bring more winter supplies to the Mid-Atlantic region, and the Pennsylvania
projects will allow supplies to be stored in the summer and moved to the Northeast
for use during the winter.
Dominion is committed to working with landowners and other
stakeholders to understand and address interests and concerns about the project.
The company's goal is to develop a project that provides benefits to natural
gas customers and the community. We will work with all governing bodies and
the local community to ensure they are aware of our project and updated as it
progresses. It is our policy to work via the agencies responsible to ensure
that our facility is developed and operated to meet or exceed all safety, environmental,
regulatory and legal requirements.
Land agents representing Dominion will personally contact
all property owners along the preferred pipeline route. Landowners along any
alternate route will also be contacted as needed.
The land agents will gather important property information
from the owners and will request permission for Dominion to enter the property
to conduct the necessary surveys and studies required for the new pipeline projects.
Learn
about the survey process.
Every representative of Dominion will carry picture identification,
including a toll-free number by which you can verify that person's authority.
Dominion takes pride in our long-standing commitment of working
with landowners and seeking input from them. Throughout the process and following
completion, we remain dedicated to working with communities on their needs and
interests. We are confident that you will see this commitment to property owners
reflected in every contact you have with all company and contract personnel.
Landowners affected by a proposed natural gas pipeline regulated
by the Federal Energy Regulatory Commission have certain rights and Dominion
works whenever possible to facilitate this process. These rights range from
being able to look at project correspondence to becoming an intervener and being
able to appeal any FERC decisions in federal court.
These rights include:
Accessing and inspecting all public documents associated
with the proposed project;
Making your concerns known in writing to the Commission
and its staff;
Participating in informational meetings held in the vicinity
of the proposed project area;
Participating in site visits in the vicinity of the proposed
project area;
Filing comments on draft Environmental Assessments and
Environmental Impact Statements;
Becoming an "intervener" or "party"
on a specific proposed project; and
Having the Commission's decision reviewed in federal court
(you must be an intervener to do this).
To learn more, see "Citizens' Guides" on FERC's
web site at www.ferc.gov
or call 1-866-208-3372.
Dominion has signed a contract with a subsidiary of Statoil
ASA, a Norway-based global gas and oil company, to contract for the new
capacity. Read
our news release. The 20-year contract provides Statoil with services to
offload LNG at Cove Point and then store or transport the gas to their customers.
The pipeline projects will follow FERC-approved open season processes, where
other companies may also use the pipelines for natural gas delivery services
in the future.
Source of Supplies
High consumer bills and continued price volatility demonstrate
the need for new supplies of natural gas and more flexible, efficient transportation
systems in the Mid-Atlantic and Northeast regions. Together, Dominion and Statoil
are stepping up to meet this need. Statoil will provide a secure, steady source
of natural gas from its sources in Norway and elsewhere. Dominion will provide
offloading, delivery and storage services for that supply.
Although there are vast reserves of natural gas in the United
States, many are not yet available. Reserves in a number of other countries
are available and for sale, but the gas has to be transported.
Dominion Cove Point and LNG will play an increasingly critical
role in meeting the energy needs of the United States' economy in coming years.
Natural gas is the energy of choice for many Americans, and demand is expected
to grow by at least 20 percent over the next decade. The LNG delivered to Cove
Point will help provide greater reliability as it augments current energy supply
sources.
Liquefied natural gas is the liquid form of the natural gas
people use in their homes for heating and cooking. There are about 113 active
LNG facilities in the United States. Most are used for storing natural gas for
wintertime use. LNG provides a safe and efficient way of transporting natural
gas over long distances, particularly from gas-producing nations with insufficient
pipeline infrastructures.
Technology for chilling and liquefying natural gas emerged
in the 1920s (learn
more). Engineers liquefy natural gas by cooling it to minus 260 degrees
Fahrenheit. Liquefying natural gas allows for much more efficient storage. In
its liquid state, 600 cubic feet of natural gas takes up only 1 cubic foot of
space, making it economical to transport between continents in specially designed
ocean tanker ships. This LNG is then stored in insulated tanks, such as those
at Dominion Cove Point.
Dominion Cove Point stores LNG at near atmospheric pressure
in reinforced insulated tanks (learn
more). The tanks consist of a stainless steel inner tank surrounded by about
4 feet of insulation, which is contained by an outer steel tank. The LNG is
re-gasified for transportation through natural gas pipelines, such as those
proposed for this expansion.
At Dominion, safety is our way of doing business. Dominion
is committed to safe operations, safe facilities and safety-minded employees.
As part of our ongoing safety focus, we meet with emergency workers and those
who live near our facilities to keep them informed about LNG, natural gas and
Dominion.
LNG is nontoxic, odorless, nonexplosive and nonflammable
in its liquid state. In fact, it will burn only after it has been re-gasified
and mixed in the proper proportion with air. Natural gas burns only within the
narrow range of a 5 to 15 percent gas-to-air mixture. Liquefied natural gas
has about 45 percent the density of water, so if spilled onto a waterway, it
will stay on top of the water until it evaporates into the atmosphere.
Since commercial LNG transport began in 1959, LNG has been
safely transported, stored and delivered to densely populated cities in the
United States, Europe and Japan. During that time, more than 33,000 LNG carrier
voyages, covering more than 60 million miles, have arrived safely without a
significant accident or safety problem, either in port or on the high seas.
Since reopening the Cove Point terminal in 2003, Dominion has maintained a safe
and secure facility (learn
more).
LNG ships are well-built, robust vessels with a double-hull
design built to withstand the low-energy impacts common during harbor and docking
operations. They are a common sight throughout much of the world. Japan, for
example, receives 96 percent of its natural gas via LNG carriers.
At steel rolling mills where the pipe is fabricated, pipeline
representatives carefully inspect new pipe to assure that it meets industry
and federal government safety standards. For corrosion control, the outside
surface is treated with a protective coating.
The pipeline will require an easement for construction, as
well as for maintenance after construction. The construction area is cleared
and graded, and a trench is dug for the pipeline. Stringing of the lengths of
pipe occurs along the trench. Pipe is bent as needed to follow the natural contour
of the land. Pipe welding is a crucial task and is performed only by welders
who have met specific industry standards and who have proven their qualifications
through programs and hands-on testing. Each weld is examined visually and is
tested with X-ray or ultrasonic equipment to assure its integrity.
All pipe that is not covered by a factory coating receives
a protective coating at the construction site. All coatings are inspected before
the pipe is buried. Once in the ground and before being placed in service, the
pipeline is filled with water and tested to assure its ability to withstand
high pressure. Take a closer look at the pipeline
construction process.
Safeguarding efforts continue when the pipe is installed.
Markers alert the public to the presence of a pipeline, identify pipeline rights-of-way
and provide an emergency phone number.
The safety of our pipeline system is and always has received
high priority, and we at Dominion can boast of a good safety record as a result.
Of course, Dominion's goal is to either comply with or to exceed all the appropriate
safety regulations and standards for the industry. Take a closer look at gas
pipeline safety. (PDF document, requires Adobe
Acrobat Reader)
The two hazards for a pipeline are puncture and corrosion.
Dominion uses pipelines made of only high-strength materials that meet or exceed
the standards of the natural gas industry and federal regulations. Our pipelines
are made resistant to corrosion by cathodic protection. A small electrical current
is run around buried pipe in our system to minimize the corrosive effects of
the soil.
Even though pipelines operate underground and out of sight,
they can be inspected from the inside using modern technology. Dominion uses
"smart pigging" to measure and analyze conditions along the pipeline's
inner and outer walls. The "pig" device travels through the pipelines
and electronically reads and records the slightest change in pipe wall thickness.
These changes can pinpoint potential problems before they become problems.
Throughout the pipeline system, the pressure of the gas in
the pipes is monitored to make sure it remains well within the limits established
by the U.S. Department of Transportation. Sophisticated computer and telecommunications
equipment can detect fluctuations and control flows. Dominion's gas control
centers operate 24 hours a day, seven days a week and know immediately if the
pressure within a pipeline falls. In the event of such a pressure drop in one
area, the control center acts to stop the gas flow to the problem area by selectively
isolating sections of the pipeline. Inspections can then determine the cause
of the problem and guide repairs.
This constant monitoring and rapid response to change ensures
that the system operates safely and enhances the reliability of our service
to customers.
Additionally, Dominion belongs to One-Call Systems that allow
anyone planning to dig, excavate, blast or otherwise disturb the ground in the
vicinity of the pipeline to make one telephone call to verify the location of
a pipeline. In Pennsylvania, the number is 1-800-242-1776; and in Maryland,
1-800-257-7777. We have found the One-Call System to be a very effective method
of protecting the pipelines.
Dominion also communicates at least annually with persons
living along our pipeline rights-of-way as well as with law enforcement, fire
and government officials in the areas in which we operate facilities.
In addition, we patrol our pipelines in order to detect any
activity that may be taking place along the pipeline. If we spot any un-reported
construction activity, we contact the contractor immediately to assure the safety
of the surroundings of the line.
Right-of-way maintenance will include manual or mechanical
grass mowing and trimming of trees.
Natural gas is a clean-burning fuel, preferred for use in
homes, factories and commercial buildings. It has become a fuel of choice for
electric power generation because it burns cleanly and efficiently.
Dominion works with federal, state and local agencies to design
the pipeline route to assure that the impact on the natural and human environment
is minimized.
Among the federal programs or regulations that will be reviewed
for any project impact and any related compliance are: Endangered Species Act
of 1973, National Historic Preservation Act of 1966, Coastal Zone Management
Act of 1972, Clean Water Act (including the National Pollutant Discharge Elimination
System program), Clean Air Act, Archaeological and Historic Act of 1974, Wild
and Scenic Rivers Act, National Wilderness Act, National Parks and Recreation
Act of 1978, and Magnuson-Stevens Fishery Conservation and Management Act.
FERC’s environmental staff concluded in April 2006 that
the Cove Point Expansion Project, with appropriate mitigating measures, would
have limited adverse environmental impact. Read
about FERC's findings.
The project also will be reviewed for potential impacts under
state and local regulatory programs for environmental issues related to streams,
wetlands, threatened and endangered species, air, etc., including programs that
implement the federal programs listed above.
Although the pipeline will be visible during construction,
it will be underground when completed and the area surrounding it will be restored.
The pipe will be buried deeply enough (with at least three feet of cover) and
the land will be appropriately restored for agricultural land to again be used
for that purpose. As with all of our pipeline projects, Dominion will work with
the appropriate regulatory agencies and landowners throughout the construction
process.
The Cove Point Terminal will continue to be a good environmental
steward. In October 2005, Dominion held a public information meeting regarding
its air quality permit. View the presentation (Powerpoint
- PDF).
Additional Information
You can get information by calling 1-866-405-5346 in Central
Pennsylvania, 1-866-704-0425 in Northern Pennsylvania or 1-866-405-5362 in Maryland.
Additional information about Dominion
also is available.
