Telf:One of the features of a terminal service contract is the outsourcing of a liquefaction service to a terminal manager instead of simply buying the finished LNG. This operation, called the “toll concept”, requires the tolled customer to be able to obtain the liquefied natural gas at the terminal himself. In this project, Pacific Summit Energy is responsible for the supply of natural gas. As part of the agreements, Gail and Sumitomo will purchase the gas themselves and pay for the use of the facility which will have the capacity to produce 5.25 million tonnes of LNG per year (mtpa). The two companies will be able to export 2.3 million tonnes per year. Cove Point produces about 5.2 million tons per year from a single train and has toll agreements with Gas Authority of India and Sumitomo Corp and Tokyo Gas of Japan. In 2012, the Sumitomo Corporation Group, through Pacific Summit Energy, a 100% subsidiary of Sumitomo Corporation, entered into a terminal service contract for the use of the Dominion LNG facility. In addition, Sumitomo Corporation, through this subsidiary, established a ST Cove Point joint venture with Tokyo Gas in 2014. Since then, the contract has been transferred to this new joint venture. ST Cove Point was created to develop and implement a sustainable operating system for the export of LNG from the terminal. Customers will purchase their own natural gas and deliver it to the Cove Point pipeline. Dominion will liquefy, store and load the gas into ships to be transported to the Chesapeake Bay plant.
Dominion will offer toll service and will not take possession of natural gas or LNG. .