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A regulatory balancing act with reverberations throughout the Gulf Coast and beyond

Jacob Dweck, Principal, LNG Solutions Group, Bill Gwozd, Vice President, Ziff Energy,
David Wochner, Attorney, Sutherland Asbill & Brennan LLP


“The purpose of this proceeding is to determine appropriate natural gas quality and interchangeability standards to accommodate the introductions of re-gasified liquefied natural gas (LNG) into the Florida Gas Transmission (FGT) pipeline system,” wrote Judge Herbert Grossman of the Federal Energy Regulatory Commission (FERC) in his 65-page Initial Decision published 11 April in the AES Ocean Express v. Florida Gas Transmission case.

The Commission’s charge, stressed the Judge, is a delicate balancing act: “facilitate increased access to LNG supplies and simultaneously ensure that the introduction of gasified LNG into the FGT system will not have detrimental effects” on electric turbines, gas distribution systems, end-user appliances and other customers.
Published in May 2006