LNG Project Does Not Require FERC Approval or Oversight

In what promises to be the first in a series of rulings concerning the jurisdiction of the Federal Energy Regulatory Commission (FERC) over liquefied and compressed natural gas (LNG and CNG) projects and activities, FERC concluded recently that an LNG project in Pennsylvania is not subject to its jurisdiction under the Natural Gas Act (NGA). Whether a planned project is subject to FERC's jurisdiction can have a significant impact in terms of the timing and costs associated with the commercialization of an LNG, CNG or natural gas play. This recent order, issued on July 17, provides regulatory assurance to help streamline the commercialization of future projects.

The July 17 order responds to an April 1, 2014, filing by Gulf Oil Limited Partnership (Gulf) of a petition for declaratory order seeking a finding of nonjurisdictional status over Gulf's construction, ownership and operation of a natural gas liquefaction facility in Northeastern Pennsylvania. Gulf explained