To accommodate its customers and the recent advances in LNG ship technology, Dominion Cove Point LNG, LP (DCP) is planning to upgrade its existing offshore pier to enable the safe docking, off-loading, and departure from the pier of larger-sized LNG vessels now coming into service worldwide.

The pier modifications will provide greater flexibility for LNG shippers to acquire and schedule LNG cargoes from a variety of supply sources, and provide American consumers with greater access to worldwide supplies of LNG. An adequate supply of natural gas from LNG delivered to Cove Point will assist to stabilizing energy costs for homes and businesses in the Mid Atlantic and Northeast United States. This project will also enable DCP to compete more effectively for LNG supplies and remain competitive with similar terminals throughout the world.

The modifications will enable DCP to receive vessels carrying larger cargoes than the current maximum capacity. Currently, vessels with a capacity of no greater than 148,000 cubic meters can be handled. The modifications will allow DCP to receive vessels carrying cargoes of up to 267,000 cubic meters. To the extent that DCP shippers opt to use the larger vessels, they could deliver comparable quantities of LNG using fewer ships; however, even after the pier is reinforced, the Terminal will remain capable of receiving the types of ships that are in use today.

The Project will result in:

• The addition of new breasting and mooring dolphins (the dolphins are the structural features, inclusive of support pilings in the water, needed for the breasting panels and mooring hooks).
• Addition of about 150 feet to each end of the existing offshore platform.
• Service platform modifications.
• Upgrading the docking control system.
• Relocating some security systems.

This project does not include the addition of LNG storage tanks, increasing throughput requiring additional ship arrivals, or changing the purpose of the facility. With the proposed modifications, there is a possibility of less ships transiting to Cove Point due to larger carrier size and more efficient transport.

The current unloading rates of the Cove Point Terminal, as listed in DCP’s FERC Gas Tariff Sheet, are an average of 10,200 cubic meters per hour and a maximum of 12,000 cubic meters per hour. The unloading rates will not change with this proposed project.

A Letter of Intent (LOI) and a Preliminary Waterway Suitability Assessment (WSA) were submitted to the USCG on May 5, 2008 and May 6, 2008, respectively.

Dominion filed its application for the Pier Reinforcement Project with the Federal Energy Regulatory Commission on Feb. 4, 2009. The docket number is CP09-60.