US official defends federal authority to approve LNG sites

15 February 2005 22:51  [Source: ICIS news]

WASHINGTON (CNI)--A US energy official on Tuesday said a proposal to impose federal site selections for new liquefied natural gas (LNG) terminals was not meant to exclude local and state authorities.

 

Mark Robinson, director of the Federal Energy Regulatory Commission’s Office of Energy Projects, reaffirmed his view that FERC maintains final authority over whether a new LNG terminal can be built.

 

But at a US Senate Energy and Natural Resources Committee hearing today, he also sought to placate concerns voiced by local and state officials who want to retain their right to halt projects that don’t meet safety standards or face strong public opposition. In a comment that seemed to further muddy the waters, Robinson said final jurisdiction is with FERC, but insisted local authorities can still halt a project if standards are poor.

 

“Yes, I do believe we have exclusive jurisdiction,” Robinson said. “But that in no way means the state doesn’t have a role to take whatever action they want to protect their coastline.”

 

Robinson faced strong criticism today from the mayor of Providence, Rhode Island and California officials over his recent proposal that the use of federal eminent domain should be applied to override public opposition and enable construction of LNG terminals.

 

David Cicilline, mayor of Providence, asked the Senate panel for a comprehensive review and reform of the LNG site selection process. Both he and Senator Dianne Feinstein (Democrat-California) cited safety and national security concerns about locating terminals in densely populated urban areas.

 

“The dangers are simply too great,” Cicilline said. “We should not be in the business of creating invitations to our enemies.” He took issue with a proposed expansion of the LNG facility in Providence, which, he said, FERC is not requiring to meet adequate safety standards.

 

A sponsor of a major LNG project at Long Beach, California supported FERC’s proposal to clarify federal jurisdiction and further streamline the licensing process.

 

Tom Giles, chief executive of Mitsubishi’s Sound Energy Solutions, warned the Senate panel that an ongoing dispute with California authorities regarding final licensing authority threatens to derail the project, despite FERC’s approval for the project. The company is set to begin construction in 2006. Giles asked Congress to enact legislation to clarify FERC’s final authority status.

 

Senator Pete Domenici (Republican-New Mexico), committee chairman, provided further backing for a streamlined process and expanded capacity for building additional LNG facilities. He noted that US gas supplies may not be able to meet rising demand for the fuel. “Clearly we need to know the impediments to us moving ahead with LNG.”

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly