Gulf Oil Limited Partnership, which distributes motor fuels to stations across the country, is moving forward with plans to construct a liquefied natural gas (LNG) production facility in northeast Pennsylvania, where Marcellus Shale dry gas production continues to rise, according to FERC filings.
On Thursday, the Federal Energy Regulatory Commission issued an order at Gulf Oil's request that will relieve the company of federal oversight under Section 7 of the Natural Gas Act, under which FERC regulates natural gas pipelines. The Commission found that Gulf Oil's proposal is "based on a desire to reach markets that can only be served by truck." The project, FERC said, would not displace interstate pipeline deliveries because LNG produced at the facility will not be transported at any point by pipeline.
Instead, Gulf plans to distribute the LNG regionally to Marcellus gas producers, truck fleet operators and natural gas utilities in New England.
"While the Commission makes jurisdictional determinations concerning projects, including LNG projects, on a case-by-case basis, the Commission has never...