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D.C. Circuit Holds FERC Adequately Addressed WGL's Concerns with Cove Point LNG Terminal Expansion

Yesterday, the U.S. Court of Appeals for the District of Columbia Circuit determined that FERC adequately addressed Washington Gas Light Company's (WGL) concerns regarding the  safety of its distribution system in light of the Cove Point LNG terminal expansion. The appeals court concluded that FERC had complied with the court's previous order by limiting the amount of regasified LNG permitted to flow onto Columbia Gas Transmission's system, from which WGL receives gas, to 530,000 Dth/d, the same volume permitted to flow through that interconnect prior to the expansion of the Cove Point LNG terminal. Therefore, the court concluded that additional regasified LNG from the Cove Point LNG Expansion cannot be said to increase the risk of leaks on WGL's pipeline system. The opinion (available here) and order should be available on the PACER website soon under Docket No. 09-1100. Platts LNG Daily offers further information [subscription required].

Full post as published by LNG Law Blog on April 28, 2010 (boomark / email).