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Dominion Cove Point Liquefaction Project Moving Forward, Cements Front-Runner Status

Dominion Cove Point Liquefaction Project Moving Forward, Cements Front-Runner
                                    Status

- Capacity fully subscribed with signed, 20-year terminal service agreements

- EPC contract awarded

- FERC application to be filed today for $3.4 billion-$3.8 billion project

PR Newswire

RICHMOND, Va., April 1, 2013

RICHMOND, Va., April 1, 2013 /PRNewswire/ --Dominion (NYSE: D) announced
today it has reached three major milestones in its Dominion Cove Point LNG
liquefaction project, pushing it to the forefrontamong proposed North
American LNG liquefaction projects.

Dominion:

  oHas fully subscribed the marketed capacity of the project with signed
    20-year terminal service agreements. Pacific Summit Energy, LLC, a U.S.
    affiliate of Japanese trading company Sumitomo Corporation, and GAIL
    Global (USA) LNG LLC, a U.S. affiliate of GAIL (India) Ltd., have each
    contracted for half of the marketed capacity. Sumitomo in turn has
    announced agreements to serve Tokyo Gas Co. and Kansai Electric Power Co.,
    Inc. GAIL is the largest natural gas processing and distributing company
    in India.
  oHas awarded its engineering, procurement and construction (EPC) contract
    for new liquefaction facilities to IHI/Kiewit Cove Point, a joint venture
    between IHI E&C International Corporation of Houston and Kiewit
    Corporation of Omaha, Neb., following completion of the front-end
    engineering and design (FEED) work.
  oPlans to submit today its application to the Federal Energy Regulatory
    Commission (FERC) for the $3.4 billion to $3.8 billion project. The filing
    is more than 12,000 pages and considers all aspects of the project,
    including safety, environment, security, cost, community effects, and
    benefits.

"Japan and India are important allies and trading partners of the United
States that are in need of secure sources of natural gas, and Sumitomo and
GAIL are high-quality companies working to meet those needs," said Thomas F.
Farrell II, Dominion chairman, president and CEO. "We believe the agreements
we have signed serve very important economic goals for all three nations."

While the gas liquefied at Cove Point may be sourced from a wide variety of
areas, Farrell noted that Cove Point – located on the Chesapeake Bay in Lusby,
Md. – will be a premier facility in terms of direct access to the Marcellus
and Utica shale plays, two of the most prolific natural gas basins in North
America.

"No other proposed liquefaction facility can provide the strategic value in
terms of supply and location," Farrell said. "We believe that having achieved
these milestones of signed terminal service agreements, an EPC contract and
our FERC filing, we are well positioned to obtain permission from the U.S.
Department of Energy to move forward with this vital infrastructure project."

The benefits of this project are expected to be far-reaching in terms of
creating jobs and supporting the local, state and national economy. A study
has shown that up to 4,000 jobs would be produced in the state of Maryland
during the construction phase. Benefits to the natural gas and other
industries would support another 14,600 jobs once the facility enters service.
The project would produce an estimated $9.8 billion in royalty payments to
mineral owners over 25 years. And, about $1 billion annually of additional
federal, state and local government revenues would be generated directly and
indirectly.

U.S. House of Representatives Democratic Whip Steny Hoyer (5-MD) said, "I am
pleased Dominion has moved forward to secure terminal agreements with two
important trading partners. The proposed Cove Point LNG liquefaction project
has the potential to make a significant contribution to Southern Maryland's
economy. Today's announcement helps to ensure the project's viability and
moves us closer to the job creation that its development is expected to bring
to Calvert County and to Maryland."

Patrick Nutter, president of the Calvert County Board of County Commissioners,
said, "The Calvert County Board of County Commissioners recognizes the major
economic impact that the Dominion Cove Point liquefaction project would have
on the county, state and nation. The liquefaction project promises to bring
thousands of construction jobs, over 180 permanent jobs and significant tax
revenue to our community upon completion. For over 30 years Cove Point has
been a partner and asset in our community. The full Board of County
Commissioners welcomes the liquefaction project as a strong complement to our
economic development efforts and sincerely appreciates the efforts of Dominion
in bringing this outstanding opportunity to fruition."

Subject to receipt of regulatory approvals, Dominion plans to start
construction on the 5.25-MTPA (million tons per annum) facility in 2014 and
put the liquefaction facilities in service in 2017.

The customers also have signed precedent agreements for service on the 88-mile
Cove Point pipeline, which connects the facility to a nexus of interstate
natural gas pipelines in northern Virginia.

The customers will procure their own natural gas and deliver it to the Cove
Point pipeline. Dominion will liquefy the gas, store it and load it into
ships brought to the facility on the Chesapeake Bay. Dominion will provide a
tolling service, and will not take possession of either the natural gas or the
LNG.

Dominion is one of the nation's largest producers and transporters of energy,
with a portfolio of approximately 27,500 megawatts of generation, 11,000 miles
of natural gas transmission, gathering and storage pipeline, and 6,300 miles
of electric transmission lines. Dominion operates one of the nation's largest
natural gas storage systems with 947 billion cubic feet of storage capacity
and serves retail energy customers in 15 states. For more information about
Dominion, visit the company's website at www.dom.com.

This news release includes certain "forward-looking information." Examples
include information as to our expectations, beliefs, plans, goals, objectives
and future financial or other performance or assumptions concerning matters
discussed in this release. Factors that could cause actual results to differ
from those in the forward-looking statements may accompany the statements
themselves. In addition, our business is influenced by many factors that are
difficult to predict, involve uncertainties that may materially affect actual
results and are often beyond our ability to control or estimate precisely,
such as estimates of future market conditions, additional competition, access
to and costs of capital, the receipt of regulatory approvals for, and timing
of, planned projects, and the ability to complete planned construction or
expansion projects within the terms and timeframes initially anticipated. We
have identified and will in the future identify a number of these factors in
our SEC Reports on Forms 10-K and 10-Q. We refer you to those discussions for
further information. Any forward-looking statement speaks only as of the date
on which it is made, and we undertake no obligation to update any
forward-looking statement to reflect events or circumstances after the date on
which it is made.

SOURCE Dominion

Website: http://www.dom.com
Contact: Media, Dan Donovan, +1-412-237-2900, +1-412-951-1080, cell,
Daniel.E.Donovan@dom.com; or Analysts, Nathan Frost, +1-804-819-2187,
Nathan.J.Frost@dom.com
 
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