The US Pipeline & Hazardous Materials Safety Administration and Federal Energy Regulatory Commission jointly signed a memorandum of understanding on Aug. 31 to expedite coordination between the agencies during permit application reviews for proposed LNG export facilities.
PHMSA—a part of the US Department of Transportation—is responsible for standards governing the location and design of LNG facilities. FERC is responsible for determining whether proposed LNG facilities under its jurisdiction are in the public interest.
The MOU clarifies each agency’s responsibilities related to the application review process for potential LNG projects, including PHMSA’s review for compliance with the siting requirements contained in Part 193 of the Federal Pipeline Safety Regulations. PHMSA will encapsulate its findings in a letter of determination, which FERC will accept as the authoritative determination of a proposed facility’s ability to comply with safety regulations.
“PHMSA’s LNG safety experts are fully prepared to analyze current and future project proposals, evaluate their potential impact on public safety, and reduce barriers to moving these projects forward,” PHMSA Administrator Skip Elliott said.
The agreement also refines information-sharing practices between the agencies, including all documents, information, and data submitted by facility applicants, Elliott said.
Under the MOU, once FERC receives a determination letter, it will consider PHMSA’s findings in deciding whether an LNG export project is in the public interest. “FERC is pleased to collaborate with PHMSA to better leverage each agency’s expertise and to process LNG applications in the safest and most efficient way possible,” said FERC Chairman Kevin J. McIntyre, who initially announced plans for the MOU at the commission’s July 19 meeting.
Action wins approvals
Two Washington organizations issued statements on Sept. 4 applauding the agencies’ action. “We hope that the focus by FERC and PHMSA will help to alleviate the delays in the LNG review process, enable projects to reach completion, and provide natural gas to feed the growing global demand for US LNG,” said Charlie Riedl, executive director at the Center for Liquefied Natural Gas.
LNG Allies Pres. Fred H. Hutchison also approved FERC’s action, noting that the commission has committed to completing its required National Environmental Policy Act reviews for the first 11 of 13 pending LNG export projects within the next 8 months, and all 13 reviews by early November 2019.
“The next wave of US LNG projects faces stiff competition from LNG plants proposed in Australia, Canada, Qatar, and Russia,” Hutchison said. “The FERC commissioners understand the reality of the global gas marketplace and are doing all they can to make sure that proposed US projects receive their federal permits in a timely manner.”
Hutchison said the next step will be for US President Donald Trump to quickly nominate—and the Senate promptly confirm—a fifth FERC commissioner. “That will ensure that FERC can meet the relatively short LNG timelines that were just announced,” he said.