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Dominion Sees Economic Opportunity for Maryland, Mid-Atlantic Following Department of Energy Natural Gas Export Study

RICHMOND, Va., Dec. 5, 2012 /PRNewswire/ -- Dominion (NYSE: D) today commented on a new macroeconomic study from the Department of Energy's (DOE) Office of Fossil Energy that confirms that selling natural gas to other countries will result in net economic benefits for the United States.

Dominion said that many benefits could come to Maryland and the Mid-Atlantic region if its Dominion Cove Point LNG facility in Lusby, Md., is approved as a site where the liquefied natural gas could be loaded on tankers and shipped to friendly nations.

"This project would mean jobs and revenues for Maryland and the Mid-Atlantic region," said Thomas F. Farrell II, Dominion's chairman, president and CEO.  "Dominion Cove Point is the logical, cost-effective and environmentally-efficient site to use to export domestic natural gas.  With the addition of liquefaction facilities at our existing site in Maryland, we will have the ability to liquefy, store and load natural gas on tankers for export to countries friendly to the U.S."

There are many significant local, state and national economic benefits anticipated with Dominion's request to process for export up to 1 billion cubic feet of natural gas per year.

  • Jobs: An average of 750 construction workers would be employed during 3+ years of construction. Union members are expected to fill a majority of those jobs. There will be between 2,700 and 3,400 jobs associated with the project in Calvert County alone at the peak of construction activity.  Benefits to the natural gas and other industries would support another 14,600 jobs once exports begin.
  • Government revenues: About $1 billion annually of additional federal, state and local government revenues would be generated directly and indirectly.
  • Taxes: Significantly increased property taxes in Calvert County. 
  • Local economic benefits: About $22 million in value annually to the local economy from 2018 through 2037 from ongoing plant activities.
  • Trade deficit: The natural gas exports would lower the U.S. trade deficit by $2.8 billion to $7.1 billion annually.
  • Environmental: By adding on to an existing facility, the Cove Point project would have less environmental impact than other projects proposed for greenfield sites elsewhere.

Dominion Cove Point's existing connections to the pipeline grid, LNG storage capacity and updated pier on the Chesapeake Bay give it advantages over other sites, but Farrell noted that many sites in the U.S. and Canada are seeking to export natural gas to Asia and Europe.

"We pledge to work with local, state and national government and regulatory agencies to bring the benefits of natural gas exports to the Maryland and Mid-Atlantic region," Farrell said. "It is one way to get increased employment and help get the regional and national economy moving again."

Dominion is one of the nation's largest producers and transporters of energy, with a portfolio of approximately 27,400 megawatts of generation, 11,000 miles of natural gas transmission, gathering and storage pipeline and 6,300 miles of electric transmission lines.  Dominion operates one of the nation's largest natural gas storage systems with 947 billion cubic feet of storage capacity and serves retail energy customers in 15 states. For more information about Dominion, visit the company's website at www.dom.com.

SOURCE Dominion

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