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FERC - Pivotal Order Outlining Jurisdiction over LNG Sales


Source: Federal Energy Regulatory Commission

Order on Petition for Declaratory Order

Before Commissioners: Cheryl A. LaFleur, Chairman; Philip D. Moeller, Tony Clark, and Norman C. Bay.

Date: Issued September 4, 2014

Page Count: 17

From the Document:

On April 11, 2014, Pivotal LNG, Inc. (Pivotal) filed a petition requesting the Commission declare that Pivotal’s and its affiliates’ liquefaction of natural gas and sales for resale of liquefied natural gas (LNG) that will be delivered by truck, rail, and other non-pipeline modes of transportation to end users will not constitute jurisdictional transportation or sales of natural gas in interstate commerce under sections 1(b) and 7 of the Natural Gas Act (NGA) and that their LNG facilities will not be deemed LNG terminals under NGA section 3 by reason of the LNG being transported in interstate commerce by waterborne vessel at some point after leaving their facilities. For the reasons discussed below, we find that with the possible exception of certain sales for resale, the facilities and activities described in Pivotal’s petition will not be subject to the Commission's jurisdiction.