Court Questions FERC’s Jurisdiction Over LNG Facilities Amid Canceled Project, Seeks Clarity on Regulatory Authority.

A federal appeals court has grilled federal energy regulators on their responsibility to govern certain types of liquefied natural gas facilities that are preparing fuel for export. The panel questioned the Federal Energy Regulatory Commission’s finding that it lacked jurisdiction to regulate an onshore facility that did not directly transfer LNG into nearby tankers via pipeline. The D.C. Circuit pressed FERC to explain why the agency could not regulate a facility that does not pump LNG directly into tankers. The judges also asked whether they should even reach a ruling in the case, since the developer of the proposed LNG facility at the center of the lawsuit canceled the project in July and currently has no plans to revive it. Nopetro Energy argued that a resolution in this case could help clarify the limits of FERC’�s jurisdiction.