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This week in hydraulic fracturing

Sidley Austin LLP

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USA September 19 2013

Dep’t of Energy approves Cove Point LNG export terminal. Dominion Cove Point LNG’s application to export liquefied natural gas (“LNG”) was the fourth approved by the U.S. Department of Energy’s (“DOE”) Office of Fossil Energy. The company proposed to convert its Lusby, Maryland LNG import terminal into an export terminal at a cost of $3.8 billion. Cove Point could begin construction as early as 2017, provided the company obtains FERC approval and several state permits over expected opposition from the Sierra Club and other environmental groups. Sen. Ron Wyden (D-Or.), Chair of the Senate Energy & Natural Resources Committee, noted that 6.37 billion cubic feet of gas per day has been approved for export and suggested additional approvals may face resistance from Congress unless applicants establish that further export terminals are in the public interest. Sen. Wyden and others have expressed concerns that gas prices could increase for domestic manufacturers unless exports are limited.

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  • Energy & Natural Resources
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