Lusby, MD – The controversial, multi-billion dollar project that will give a local, 40-year-old gas plant the capability to export its product is nearing its completion. The Dominion Cove Point Liquefaction Project, according to plant officials, is now 84 percent completed. Dominion Vice President of Construction Bob McKinley stated during a local press briefing at the Lusby plant that the nearly $4 billion project is on schedule and within budget. He added the soon-to-be completed project is expanding the plant’s fire protection safety systems. “It’s a very well-protected facility,” said McKinley.
Some of the trickier logistics of constructing the components to make the export of liquefied natural gas (LNG) by way of the tankers that will dock at the plant’s offshore pier have been completed without incident, Dominion officials affirmed. McKinley said all of the “heavy hauls” have been completed. In total, 35 barges were received at a temporary pier that was constructed near the Governor Thomas Johnson Bridge in 2014. Crews completed 77 heavy hauls. “All of those went very well,” said McKinley. The pier has since been removed and the land adjacent to the pier has been restored. Dominion officials will be starting the required oyster mitigation program, which includes a 4-acre oyster bar restoration project.
McKinley indicated the construction project has peaked. During the peak period 50 cranes were on the construction site. Recently, a tower crane was disassembled and moved off site. McKinley more cranes will be leaving the site in the weeks to come. The construction workforce totaled approximately 3,550 laborers during the project peak. “It will start to taper down,” McKinley stated. By July the number of construction workers at the Cove Point project will be less than 1,000. McKinley pointed out that 35 percent of the project workers are Tri-County residents.
Dominion Vice President of LNG Operations Mike Frederick stated that over 30 plant employees are in training for the facility’s newly created fire brigade. The training is being conducted by the Maryland Fire and Rescue Institute.
Frederick said training is underway for some of the new hires for the permanent jobs the expansion has created. Dominion started hiring new operators in 2015. The operator training consists of up to 171 days on a simulator plus on-the-job training. The new facility will require about 99 new employees, bringing the plant total to 199 once operational.
The commissioning process has already begun. The Federal Energy Regulatory Commission (FERC) will oversee the commissioning of the liquefaction facility. Other agencies involved include the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration, the Maryland Department of the Environment and the U.S. Coast Guard. The latter two agencies, said Frederick, have already conducted surprise inspections at Cove Point.
With contractual agreements in place for exporting natural gas to Japan and India, the Cove Point plant is projected to increase local property tax payments by about $40 million per year and generate about $20 million in income taxes over the life of the project, Dominion officials stated. Additionally, labor income associated with the construction employment is expected to exceed $300 million, and business sales supported by the construction and operation is expected to exceed $2 billion.
When the liquefaction facility has been commissioned and is operational, approximately 85 vessels per year will dock and load at the Cove Point offshore pier. Frederick stated Dominion is authorized for 220 dockings annually.
McKinley pointed out the huge project has progressed with very few Occupational Safety and Health Administration (OSHA) recordable incidents. He cited statistics that show that in 2016, 1.8 million man hours were run without an OSHA-recordable incident. The average OSHA Recordable Incident Rate (RIR) for heavy construction is 3.7. The Dominion Cove Point project OSHA RIR is 0.32.
For more on the Dominion Cove Point Liquefaction Project visit the company web site.
Contact Marty Madden at marty.madden@thebaynet.com
