Shale Energy Law Blog
Md. Court Rules That Dominion May Export LNG from Cove Point Terminal
January 7, 2013
On Friday, the Circuit Court for Prince George’s County, Maryland, ruled that Dominion has the right to export liquefied natural gas (“LNG”) from its Cove Point terminal in Calvert County, Maryland. The Sierra Club and the Maryland Conservation Council sued Dominion last year, arguing that a 2005 agreement with Dominion prohibited exports from the Cove Point LNG import terminal. Platts reports that Circuit Court concluded that there is no provision in the 2005 agreement that explicitly prohibits the use of the facility from exporting LNG, and therefore, Dominion has the right to use the facility to export LNG. The State Journal reports that the facility was historically used for imports, but Dominion has since proposed to reconfigure the facility for liquefaction and exports as shale gas continues to boom.