Dominion Energy denies claims of contract renegotiations for liquefied natural gas sales contracts
Dominion Energy released a statement Tuesday rebutting a report from India’s oil minister that state-owned gas processor GAIL (India) LTD was renegotiating deals with the company related to sales of liquid natural gas (LNG).
In the statement, Dominion said that it is continuing with final commissioning work at its Cove Point liquid natural gas (LNG) export facility in Lusby, Maryland and plans to begin commercial operations early next year.
It would begin operations, the company said, under the terms of previously negotiated 20-year contracts with ST Cove Point, the joint venture of Sumitomo Corporation and Tokyo Gas, and GGULL, the U.S. affiliate of GAIL (India) LTD.
“The characterization of contract renegotiations is false,” Dominion Energy said in the statement. “Conversations are ongoing with export customers in preparation for beginning commercial operations but there have been no changes in the contract terms since initial contract execution, and Dominion Energy does not intend to renegotiate contract terms in the future.”
Dominion noted that all major equipment has been operated and that the facility has undergone testing and quality assurance activities.
The liquefaction facility has a nameplate capacity of 5.25 million tons per annum of liquefied natural gas.
