FERC's LNG program ensures the safe operation and reliability
of proposed and operating LNG terminals in the United States. Public safety is among FERC's highest priorities when it comes to regulating LNG terminals.
FERC uses a comprehensive process that includes working
very closely with the US Coast Guard, Department of Transportation,
the States and local governments. This process ensures that approved
LNG terminals and associated LNG vessel traffic meet safety and
environmental requirements during construction and operation.
FERC can also impose safety requirements to ensure or enhance
operational reliability of the LNG terminals.
How many projects might be built?
There are about 40 LNG terminals that are either before
FERC or being discussed by the LNG industry for North America. Eight
terminals (7 import and 1 export) are already operating on the East Coast, Gulf Coast, Puerto
Rico and Alaska (export).
Currently, there are 16 facilities under FERC jurisdiction in
the continental US. Twelve of the facilities are land-based, peak-shaving
plants that liquefy and store LNG during the summer (low demand)
months for sendout during winter (high demand) months. The remainder
are baseload LNG import terminals, which are the focus of this
LNG section.
Any LNG terminal project that is approved must also obtain Coastal
Zone Management Act, Section 404 water quality certificate, and
Section 404 dredging permits.
The market ultimately determines whether an approved LNG terminal
is ever built. Even if an LNG terminal project receives all of
the federal and state approvals, it still must meet complicated
global issues surrounding financing, gas supply and market conditions.
Many industry analysts predict that only 12 of the 40 LNG terminals
being considered will ever be built.
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