LNG Facility Expansion Halted Due to Leakage Concerns

Monday, July 21, 2008

The US Court of Appeals for the vacated an order of the Federal Energy Regulatory Commission (FERC) granting permission for expansion of the liquefied natural gas (LNG) facility at Cove Point. A local natural gas distribution company that receives natural gas from the facility sought review of the expansion order, arguing that the expansion project would cause severe leakage throughout its distribution system. The court found that substantial evidence supports FERC’s conclusion that any threat of leakage is due to defects in the local distribution company’s system. The court also found, though, that substantial evidence does not support FERC’s conclusion that the local distribution company can address safety concerns before the project’s in-service date. The matter has been remanded to FERC so that it can more fully address whether the expansion project can go forward without causing unsafe leakage.

 

Source: HK Law

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