LNG Imports and FPC Regulation

Abstract

American Institute of Mining, Metallurgical, and Petroleum Engineers, Inc. Abstract The United States Federal Power Commission's approval must be obtained for the importation of LNG, which has been considered as natural gas, and for the transportation and resale of imported LNG in interstate commerce and the facilities associated therewith. Longterm base-load LNG imports are a potential source of significant potential source of significant supplemental natural gas supply. The required applications for approval of these imports must contain certain descriptive information and are processed, reviewed, and decided according to administrative procedure. The Commission has approved procedure. The Commission has approved several of these applications to date and has decided some of the issues raised therein. The views expressed herein are the views of the author and do not necessarily reflect the views of the Federal Power Commission or its staff. Introduction The technology for the production and handling of liquefied natural gas (LNG) is well established. The benefit of liquefaction is the volume reduction advantage in converting from the gaseous to the liquid phase. This affords a greater degree of flexibility for the transportation and storage of natural gas in many areas of gas utility operations. In addition, liquefaction makes possible the transportation of overseas gas reserves to the United States. These potential LNG imports could have a potential LNG imports could have a significant impact on United States gas supplies. United States LNG imports can be characterized as short-term and long term.