FERC approves service of Cove Point LNG expansion

NEW YORK, Dec 17 (Reuters) - The U.S. Federal Energy Regulatory Commission said on Wednesday it granted Dominion Resources' Cove Point LNG conditional approval to commence service at its expansion of its existing LNG terminal in Maryland.

The Cove Point LNG terminal has a capacity to send out 1 billion cubic feet (bcf) of gas a day, and the expansion -- construction for which was approved in June 2006 -- will add a further 0.8 bcf.

Following a staff inspection on Dec. 2, FERC concluded that the terminal has addressed outstanding items needed to commence service.

"Dominion Cove Point LNG has satisfactorily addressed the outstanding items needed to commence service, and rehabilitation and restoration of the facility site is proceeding satisfactorily," said Lauren H. O'Donnell, director of FERC's Division of Gas - Environment and Engineering in a letter.

Cove Point LNG must file information about a completion date for some remaining items within 30 days, including a gas turbine generator, the letter said.

(Reporting by Edward McAllister; Editing by Marguerita Choy) Keywords: LNG COVEPOINT/FERC

(Edward.mcallister@thomsonreuters.com; +1 646 223 6221; Reuters Messaging:edward.mcallister.reuters.com@reuters.net)

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