Gail India Books Capacity in Cove LNG Terminal

India's state owned energy firm GAIL has signed a terminal service agreement with Dominion through GAIL Global (USA) LNG LLC for booking 2.3 mmtpa liquefaction capacity in the Cove Point LNG terminal project located at Lusby in the state of Maryland.

Dominion would be setting up the liquefaction facilities in the premises of its existing 11.7 mmtpa regasification terminal. Construction work is expected to start in 2014 so as to put the liquefaction facilities into service in 2017.

“Dominion is marketing 4.6 mmtpa and GAIL has booked 50% of such capacity for 20 years. Cove Point will be a premier facility in terms of direct access to the Marcellus and Utica shale plays, two of the most prolific shale gas basins in North America,” GAIL said in a statement.

Under this agreement, GAIL will procure its own natural gas and deliver it to the Cove Point pipeline for liquefaction at the terminal and loading into ships brought to the facility on the Chesapeake Bay.