FERC Disclaims Jurisdiction Over Inland Facility Producing LNG for Export
Posted on Apr 6, 2015 in Federal Regulation, Liquefaction, LNG Exports | Comments Off on FERC Disclaims Jurisdiction Over Inland Facility Producing LNG for Export
FERC has issued an order disclaiming jurisdiction pursuant to section 3 of the Natural Gas Act over Pivotal LNG and its affiliates’ inland U.S. facilities, which produce LNG that may ultimately be exported. FERC ruled that its section 3 LNG terminal jurisdiction extends to a facility that is “(1) connected to a pipeline that delivers gas to or sends gas from the facility and (2) located at the point of import or export such that LNG is directly transferred to or from an ocean-going, bulk-carrier LNG tanker.” Since the LNG facilities operated by Pivotal and its affiliates are all located inland, and not capable of transferring LNG directly onto ocean-going, bulk-carrier LNG tankers, FERC ruled that section 3 jurisdiction does not attach.