Proceedings Of The Marine

FALL 2015

Proceedings magazine is a communication tool for the Coast Guard's Marine Safety & Security Council. Each quarterly magazine focuses on a specific theme of interest to the marine industry.

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Page 27 of 94

25 Fall 2015 Proceedings pipeline transportation and 11 facilities engaged in LNG import or export. In the early 2000s, there was widespread interest in devel- oping LNG import terminals to supplement the nation's natural gas supply in expectation of dwindling domestic production. Since then, the supply outlook has drastically changed, with increases in domestic natural gas exceeding domestic demand. As a result, the industry is investing bil- lions in developing facilities to export natural gas. Increas- ing domestic supplies have also prompted investment in developing LNG fueling stations and increased liquefed natural gas transportation via truck, rail, and ship, as noted earlier in this edition. While terminals within state jurisdictional waters are subject to FERC review under the Natural Gas Act, those located seaward of a coastal state's boundary are subject to the Deepwater Port Act, which requires U.S. Maritime Administration (MARAD) review. Although LNG export terminals, fueling facilities, and container transport would More than 130 individual facilities that handle liquefed nat- ural gas (LNG) operate in the U.S. These installations supply natural gas to pipeline systems, store it for peak demand periods, provide LNG for industrial use, serve natural gas as vehicle and vessel fuel, and trade natural gas in foreign commerce. The commercial use and physical location of each installation are factors in determining whether state or federal agencies are responsible for regulating these facili- ties. The U.S. Department of Transportation (DOT) regulates siting, construction, operation, and maintenance practices for the majority of onshore LNG plants, and the U.S. Coast Guard regulates facilities located in or adjacent to a water- way, including marine transfer area design, construction, operation, and maintenance as well as the waterfront por- tions of the plant. Approximately 20 percent of the operational liquefed natu- ral gas plants in the U.S. are also subject to the Natural Gas Act due to their involvement in either interstate or inter- national natural gas transportation. 1 The Federal Energy Regulatory Commission (FERC) determines whether the construction and operation of LNG plants engaged in inter- state natural gas transportation by pipe- line are in the public interest. Jurisdiction The U.S. Department of Energy (DOE) and FERC share Natural Gas Act juris- diction for onshore and near-shore LNG import or export terminals. DOE reviews applications to import or export natural gas and FERC processes construction and operation applications for specifc facili- ties that will engage in import or export operat ions. Twent y-four operat ional plants are under Federal Energy Regula- tory Commission jurisdiction: 13 liquefed natural gas facilities engaged in interstate Liquefed Natural Gas Terminals Review and approval process. by Mr. tErry l. turPin, P.E. Director of the Division of Gas-Environment and Engineering Federal Energy Regulatory Commission Liquefed Gas Production, Transportation, and Use Operational On-Shore & Near-Shore LNG Facilities. Graphic courtesy of FERC.

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