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LNG - Policy
FERC's LNG policy is expressed in its Strategic
Plan and its Budget
Submission  to Congress. The policy also reflects new
research, safety methodologies and lessons learned from LNG accidents
and ongoing LNG project case processing.
The Commission has articulated its new LNG policy in its December
18, 2002 Hackberry policy News Release | Order
. The policy's goal is to remove economic and regulatory
barriers to the development of onshore LNG import terminals. FERC's
policy is applicable where markets are competitive and other criteria
are met. FERC has also asserted its exclusive
authority over LNG facilities.
A summary of the policy is as follows:
- For new LNG projects, parties mutually agree to rates and
terms and conditions of LNG terminalling service;
- New LNG projects not required to offer open access service
or maintain a tariff and rate schedules;
- Granted under NGA section 3 (public interest standard),
not NGA section 7 (public convenience and necessity standard)
- Commission reasoning:
- First sales, including sales of LNG, deregulated by Energy
Policy Act of 1992
- Sales of revaporized LNG to be made at tailgate of LNG
plant into pipeline (instead of inlet to LNG plant)
- Sales made in competition with other sales in Gulf Coast
deregulated commodity market
FERC's policy has been discussed by Commissioners and Senior Management in testimony before Natural Gas Conferences   sponsored by Congress and Congressional hearings. See testimony by former Chairman Wood and Mark Robinson , Director of the Office of Energy Projects, that further articulate FERC's LNG policy.
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