|
FERC taking on oversight at Kenai LNG plant
Kristen Nelson Petroleum News
On Jan. 15 the Federal Energy Regulatory Commission notified ConocoPhillips and Marathon that the agency was taking on oversight of the Nikiski liquefied natural gas facility the companies built and have operated since 1969.
FERC said that in the 1960s it was determined that the facility was not subject to FERC oversight because it was not on the U.S. border with another country.
FERC said the scope of its authority over LNG terminal and storage authorities has since been clarified and it “currently exercises its jurisdiction over the siting, construction, operation and maintenance of LNG terminals to impose reporting and inspection requirements that serve to ensure the safety and security of such facilities.”
The Kenai facility is subject to and must comply with FERC’s reporting and inspection requirements, the agency said.
“FERC’s recent order states that its purpose is to clarify that the Kenai LNG facility is subject to the Commission’s reporting and inspection requirements,” ConocoPhillips told Petroleum News in an e-mail.
“ConocoPhillips, in consultation with its co-venturer, is evaluating the order,” the company said, and added that it has operated the Kenai LNG export facility safely since 1969.
Design review FERC said that to ensure the Kenai LNG facility conforms to the requirements met by other such facilities, it “will be subject to a cryogenic design and technical review of the facility’s design, operation and maintenance,” and ConocoPhillips and Marathon were directed to provide specific information included in applications for LNG projects.
After the information is reviewed, “staff may recommend modifications to be made to the facilities and operations of the LNG terminal and storage facilities,” FERC said in its order.
After the initial review, the Kenai LNG facility will be subject to at least annual technical reviews and site inspections. Semiannual operational reports are also required and the companies must report significant nonscheduled events to FERC staff.
ConocoPhillips and Marathon are required to provide information identified in the order within 90 days.
| 