During an Open Meeting on September 21, 2023, the Federal Energy Regulatory Commission (FERC) passed four of the six Natural Gas Act (NGA) certificate orders for interstate natural gas pipelines and liquefied natural gas (LNG) terminals. Interestingly, these orders had been unexpectedly removed from the agenda at the preceding July Open Meeting.
This decision represents a rather unexpected shift from FERC, as previously it had refrained from approving any significant LNG projects or issuing certificate orders for interstate natural gas pipelines. However, the four approvals granted at the September Open Meeting act as a pivotal step in the commission’s approach towards the industry.
The approved projects encompass a broad scope within the US natural gas and LNG space, indicative of the commission’s willingness to engage with prominent sector stakeholders more extensively than has been evident in recent months. There is little doubt that these developments carry significant implications for the industry, marking a considerable change in course for the federal regulator.
While the precise rationale behind FERC’s recent decisions remains somewhat opaque, the agency’s actions suggest a greater recognition of the crucial role that LNG and pipeline infrastructure plays in the country’s energy landscape. This change in attitude may also signal an evolution in the commission’s perspective towards the ongoing transition towards cleaner energy sources, considering the critical part that natural gas plays in this shift.
For more detailed legal analysis on this issue, please refer to the full article.