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Cove Point: Regulators Approve Maryland LNG Import Turned Export Facility

If you are looking for an example of the dramatic effects of the Marcellus Shale natural gas boom, a good place to start is Cove Point, Maryland. A facility there originally designed as an import terminal has now been repurposed as an export terminal over the vigorous objections of environmental groups. Natural gas in its liquid state (LNG), cooled to minus 259 degrees Fahrenheit, takes up approximately 1/600 of the volume of the gaseous state, and is thus much more economical to transport and store in large quantities, making it the ideal form for exporting natural gas produced domestically to foreign countries. The Federal Energy Regulatory Commission (FERC) recently approved an export facility in Maryland that will liquefy Marcellus region natural gas for export to countries such as India. Construction has begun and exports could commence as early as 2017. This article will first briefly explore the regulatory approval landscape, and then consider arguments raised by environmental groups regarding the potential environmental impacts of LNG exports on the Marcellus region.