Dominion Cove Point LNG
| Company type | Subsidiary |
|---|---|
| Industry | Energy |
| Founded | 1972 |
| Headquarters | Lusby, Maryland , United States |
Area served | Chesapeake Bay region, United States |
| Products | Liquefied natural gas (LNG) import, export, storage, and liquefaction |
| Owner | Berkshire Hathaway Energy (75%), Brookfield Infrastructure Partners (25%) |
| Parent | BHE GT&S (subsidiary of Berkshire Hathaway Energy) |
| Website | www |
Cove Point LNG Terminal is an offshore liquefied natural gas shipping facility operated by BHE GT&S, a subsidiary of Berkshire Hathaway Energy. Situated near Lusby, Maryland on the western shore of the Chesapeake Bay, it functions to export LNG through dedicated LNG carrier vessels and to store natural gas.
The terminal’s shipping dock () is located roughly from the storage tanks (), linked by an underwater pipeline tunnel. The complex also houses a liquefaction plant. BHE GT&S oversees daily operations and holds a 75% ownership stake, while Brookfield Infrastructure Partners owns the remaining 25% via its Super Core infrastructure fund.
History
Approved in 1972 for the importation of Algerian LNG, Cove Point initially supplied gas to the Columbia Gas Transmission and Consolidated Natural Gas pipeline systems. Imports from Algeria took place between 1978 and 1980.
On October 6, 1979, a pump leak triggered an explosion that caused one death, one critical injury, and extensive damage to the facility.
Due to Algeria’s demands for higher prices, shipments diminished, leading to reduced utilization of the terminal.
In 1994, the site was repurposed for domestic natural gas storage with the installation of a liquefaction unit that cools gas to approximately . The original LNG storage tanks and gasifier units remained in use. Storage and import activities continue to be regulated by the Federal Energy Regulatory Commission (FERC) under the provisions of the Natural Gas Act of 1938.
LNG imports resumed in 2001 alongside storage operations. After adding a fifth storage tank, imports recommenced in summer 2003 with suppliers such as BG Group, Royal Dutch Shell, and Statoil. In 2006, FERC approved an unregulated increase in import capacity, with Statoil acquiring rights to this expanded capacity. Storage volume grew from 7.8 billion to 14.6 billion cubic feet.
Expansion of facility to export LNG
On April 1, 2013, Dominion submitted an application to FERC (Docket CP13-113) seeking approval to expand Cove Point’s infrastructure for gas liquefaction and export purposes. The project’s estimated cost ranged from $3.4 billion to $3.8 billion. Completed in early 2018, the upgrade transformed the terminal into a bidirectional facility capable of both LNG import and export, with a daily processing capacity of .
In 2020, Berkshire Hathaway Energy acquired a 25% interest in the terminal. Dominion Energy maintains a 50% ownership share, while Brookfield continues to hold the remaining 25%.
Environmental
Occupying 1,000 acres along Chesapeake Bay, Cove Point utilizes only about 15% (131 acres) of its land for operational activities; the remainder is permanently preserved. The facility implements Maryland’s most rigorous leak detection and repair program and has earned several environmental stewardship accolades.
In 2018, Cove Point LNG achieved LEED Certification—the first in Calvert County, Maryland—demonstrating restroom water usage reductions of 40% and energy consumption decreases of 32% compared to comparable facilities.
After a storm in 2008 breached the adjacent Cove Point Marsh—a Maryland Heritage Area spanning 190 acres that hosts over 40 rare plant species—a restoration initiative employed more than 33,000 tons of rock and 10,000 tons of sand to reconstruct a 2,600-foot revetment and stabilize the habitat. The site continues ongoing monitoring and recovery reporting efforts. For its environmental initiatives, Cove Point received the National Environmental Excellence Award and was honored as “Hero of the Chesapeake Bay” by the Maryland Legislative Sportsmen's Foundation.
Controversies
In 2001, nearby community members raised objections to the plant's planned reopening, citing its close location—approximately 3 miles—from the Calvert Cliffs Nuclear Power Plant and the associated hazards of potential explosions or attacks. They argued that FERC had insufficiently evaluated these safety concerns.
By 2005, Washington Gas Light Company, a regional utility sourcing LNG from Cove Point, reported that the elevated heat content of the LNG was negatively impacting their customers. To mitigate this issue, involved parties consented to restrict the terminal’s output heat value to 1075 Btu per ft3 (40.05 MJ/m3) through nitrogen dilution.
Subsequently, Washington Gas Light observed a sixteenfold rise in gas leaks at residential connections within Prince George's County, Maryland, which receive gas directly via pipeline from the facility. The leaks were primarily linked to mechanical couplings featuring rubber gaskets. Washington Gas attributed these failures to the lower presence of heavy hydrocarbons such as hexane in Cove Point gas, which caused gasket drying and leakage. Cove Point contested these assertions, maintaining that the terminal’s expansion would not lead to increased leaks in areas like the District of Columbia and Northern Virginia suburbs despite a higher supply of unblended LNG.
In 2006, Cove Point submitted a filing with FERC proposing a 109 percent increase in pipeline fees for customers located in Georgia, North Carolina, Virginia, and Maryland.