FERC reorganizes to support LNG apps

Petroleum News

The Federal Energy Regulatory Commission is reorganizing to better support liquefied natural gas applications. FERC Chairman Neil Chatterjee said in a July 23 statement that the agency is creating a new division in its Office of Energy Projects because of the growing number and complexity of applications to site, build and operate LNG terminals.

The Division of LNG Facility Review and Inspection will consist of 20 existing LNG staff in Washington, D.C., and eight additional full-time staff recruited and based in a new Houston regional office.

“As the demand for U.S. LNG and the number and complexity of project applications has grown, the Commission has experienced a similar growth in the need for FERC to expand its oversight in this program area,” Chatterjee said. “Much of the work related to these LNG projects, and the expertise it requires, is based in and around Houston, the so-called ‘Energy Capital of the World.’ For that reason, after careful research and evaluation, the Commission has determined we should direct our newest efforts to recruiting staff in the area to build upon the good work already being done on these issues at our D.C. headquarters.”

FERC had 13 staff dedicated to LNG engineering and review issues in April 2018, and the number has since grown to 20. The agency said their efforts are critical to completing engineering reviews, coordinating safety reviews with the Pipeline and Hazardous Materials Safety Administration at the Department of Transportation, and preparing engineering analyses for environmental documents. Creating the new division and expanding in Houston will help prepare for additional work necessary once LNG project applicants make final investment decisions and move toward construction.

FERC has begun coordinating with the General Services Administration on space requirements in Houston and postings for additional staff, starting with the division director, will be made shortly.

- Petroleum News