FERC proposes blanket authorization program for LNG facilities

The U.S. Federal Energy Regulatory Commission proposed a blanket authorization program that would let certain work at liquefied natural gas facilities proceed without a separate case-specific order. The commission voted unanimously on October 15 to issue the proposed rule, which creates three tiers: automatic authorization, 60-day advance notice and 90-day advance notice.

Under the proposal, some work could proceed automatically if it does not raise authorized capacity, expand the plant footprint or exceed design limits. Certain capacity increases would require 60 days’ notice, while construction of specified new facilities, including liquefaction trains, tanks and marine berths, would require 90 days’ notice. FERC also proposed standard environmental and engineering conditions. The framework remains a proposal; comments would be due 60 days after publication in the Federal Register.