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Dominion, Shipper Cancel Agreement for Cove Point LNG Output

Oct. 25 (Bloomberg) -- Dominion Resources Inc. said it and an unnamed shipping company terminated an agreement for liquefied natural gas to be processed and shipped from the company’s planned Cove Point export facility.

Dominion is in talks with other potential customers and expects to complete agreements for the terminal’s planned capacity by the end of the year, Dan Donovan, a spokesman for Dominion Energy, said in a telephone interview today.

The contract with the company, which Dominion declined to name, was terminated “by mutual consent” this month, Donovan said.

Sumitomo Corp., Japan’s third-largest trading house, said April 27 that it and Tokyo Gas Co. had agreed to buy 2.3 million metric tons of liquefied natural gas annually for 20 years from Cove Point. Dominion, which still needs U.S. approval to sell to Japan, plans to start exports at the Maryland terminal in 2017.

To contact the reporter on this story: Julie Johnsson in Chicago at

To contact the editor responsible for this story: Susan Warren at

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