Kelliher Comments on Gas Composition and LNG Regional Siting Policy

FERC Chairman Joseph Kelliher today commented on current natural gas industry issues, including gas composition issues and arguments for regional LNG terminal siting. Speaking at the monthly Natural Gas Roundtable in Washington, Kelliher stated that a rulemaking setting national standards for gas quality and interchangeability “presupposes a national problem,” which Kelliher said he does not believe exists. He further noted that a rulemaking establishing regional-type standards would require the Commission to consider gas quality data at thousands of receipt points, which logistically would be very challenging for FERC.

Kelliher also offered comments challenging arguments that there should be a regional siting policy for LNG terminals. He likened a regional approach to LNG siting to the unsuccessful regional siting approach that was attempted for low-level waste disposal projects in the early 1980s. Referencing the proposed Weaver’s Cove and KeySpan LNG terminals, Kelliher noted that even with a regional approach, “Providence and Fall River wouldn’t have come out any differently.” Noting the failure of the regional low-level waste plan, Kelliher stated that “we want to avoid an experience that previously has not worked.”