FERC streamlines rules on gas from LNG

Oct. 20, 2006
The US Federal Energy Regulatory Commission broadened its rules on natural gas projects eligible to proceed without a specific, case-by-case FERC authorization.

By OGJ editors
HOUSTON, Oct. 20 -- The US Federal Energy Regulatory Commission broadened its rules on natural gas projects eligible to proceed without a specific, case-by-case FERC authorization.

On Oct. 19, FERC approved a final rule expanding blanket certificate eligibility for projects at storage facilities, pipelines, and facilities to transport gas from LNG receiving terminals.

Blanket certificates are granted to companies already having FERC project approval. These certificates allow companies to improve or upgrade facilities or build new facilities without case-by-case certificate authorization.

The latest ruling raised the cost limits for blanket certificate projects to $9.6 million from $8.2 million for automatic authorizations and to $27.4 million from $22.7 million for prior-notice projects, which require FERC review.