The facility was originally certified in 1972 for the importation of Algerian LNG for resale by the Columbia and Consolidated Natural Gas systems. Cove Point began receiving LNG imported from Algeria between 1978 and 1980. On October 6, 1979, LNG vapors leaking from a pump exploded, causing 1 death, 1 critical injury, and major damage to the facility. The Algerians requested a higher price for the LNG, which the company found unacceptable, so shipment volume decreased and the terminal fell into disuse. In 1994, the facility was transformed into a facility to store domestic natural gas. A liquefaction unit was installed that cools natural gas to the point where it becomes a liquid, around. The facility continued to use the original LNG storage tanks and gasifier units. Both the storage and import activity are subject to regulation by the Federal Energy Regulatory Commission under the Natural Gas Act. In 2001, various parties agreed to resume imports at the facility, while continuing its storage operations. Following the construction of a fifth LNG storage tank, imports resumed in the summer of 2003. Imported LNG suppliers include BG LNG, Shell LNG, and Statoil. In 2006, FERC authorized a further expansion of Cove Point's import capacity on an unregulated basis, with Statoil holding the expanded capacity. Storage capacity has recently expanded from 7.8 billion cubic feet of natural gas to the current 14.6 billion cubic feet.
Expansion of facility to export LNG
On 1 April 2013, Dominion filed an application with the FERC for expansion of the Cove Point facilities for gas liquefaction and export. The proposed expansion is projected to cost $3.4 billion to $3.8 billion. The export project is expected to be completed in late 2017, after which the facility will be bidirectional. The export facility will have capacity to handle per day of natural gas. In 2020, Berkshire Hathaway Energy took a 25 percent stake in the facility.
Controversies
In 2001, when the plant was scheduled to reopen, many local residents were concerned about the proximity to Calvert Cliffs Nuclear Power Plant, and the damage that could be caused by an attack or an explosion at the plant. Residents thought that the FERC did not consider the risks before opening the plant. Because the LNG at Cove Point contains a higher heat content than domestic natural gas, a local gas utility which receives LNG from Cove Point, Washington Gas Light Company, complained in 2005 that its customers were adversely affected by this "hot" gas. As a result, the parties agreed to limit the heat content of the output of the terminal to 1075 Btu per ft³ by diluting it with nitrogen gas. Subsequently, Washington Gas Light experienced a 16-fold increase in gas leaks on residential service connections in Prince George's County, Maryland, which is served directly by pipeline from the plant. These leaks come from mechanical couplings which contain rubber gaskets. Washington Gas Light claims that because the Cove Point gas has less hexane and other heavy hydrocarbons than does domestic natural gas, the Cove Point gas causes the gaskets to dry out and leak. Cove Point disputes these claims and argues that Washington Gas's arguments are flawed and the expansion will not cause additional leaks in the District of Columbia and Northern Virginia suburbs as the area served by unblended LNG increases. In 2006, Cove Point filed a rate increase with FERC proposing to raise the prices it charges to customers in Georgia, North Carolina, Virginia, and Maryland by 109 percent. The proposed liquefaction project has been approved and Cove Point has begun construction with the target date of late 2017 to begin exporting LNG from the facility.
