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Three LNG Proposals Get FERC Approval

Three liquefied natural gas projects proposed for U.S. building have received approval from the Federal Energy Regulatory Commission (FERC).

A FERC Final Environmental Impact Statement has declared that the facilities would not have significant adverse effects on the environment. Final agency approval is not guaranteed, but the announcement is an important step in that direction.

FERC commissioners will soon vote on BP Plc's Crown Landing LNG terminal in New Jersey on the Delaware River, Dominion Resources' Energy Cove Point LNG import terminal in Maryland, and Sempra Energy's Port Arthur LNG terminal.

Winning approval from FERC or MARAD in no way guarantees that the facilities will be built. Local politics can often be the biggest hurdle for those hoping to cash in on the rapidly expanding domestic demand for LNG.

In New Jersey, BP’s plan to build a liquefied natural gas import terminal in Gloucester County has sparked fierce debate about safety issues related to potential terrorism. Litigation spawned by the project makes it anything but a done deal. Other projects, more than 40 in total across North America, face similar challenges.