Page 21 - LatAmOil Annual Review 2021

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Some of these claims included statements of NFE responded by filing a petition appeal-
concern about the possibility that the terminal ing FERC’s decision in the US District Court
or the ships bringing LNG to the facility might of Appeals for the District of Columbia in May.
explode, while others raised questions about the According to a report from S&P Global Platts,
environmental risks of gas leaks. Meanwhile, the company is now set to proceed with the
one of the NGOs involved in the campaign case in the federal court system. Presumably,
against NFE’s project – Alianza de Energía this means that the LNG terminal will continue
Renovable Ahora (AERA), an environmental to operate, even though the 180-day applica-
advocacy group that favours the expansion of tion deadline set by FERC is due to expire in
renewable energy capacity – pointed to proce- mid-September.
dural irregularities.
In its complaints, AERA alleged that NFE What next?
had not met all of the relevant requirements for It is not currently clear whether FERC will seek
notifying the public of its plans. It said that the jurisdiction over the Gibbstown project, espe-
company had not upheld its obligation to draw cially as opposition to it becomes more vocal.
up a location consultation for the LNG terminal However, this is not the only obstacle for NFE if
or its responsibility to give the groups and com- it attempts to move the project – on which work
munities most likely to be affected by the project. has been stalled for some time – forward.
During the regulatory review, both NFE The company itself has said nothing recently NFE’s experience
and the Puerto Rico Electric Power Authority about either the Gibbstown terminal or the
(PREPA), which has been using the terminal Wyalusing liquefaction plant in Pennsylvania, in Puerto Rico
to import LNG for regasification and delivery where the LNG would originate. Neither project shows that
to a thermal power plant (TPP) in San Juan, appears on its website, nor are they mentioned
pushed back against the project’s critics. NFE in recent investor presentations. According to additional
argued that the commission had no reason to an October 2020 filing, the Wyalusing plant was
get involved in the matter, as the terminal was due to begin production around the first quarter regulatory
built to a design that closely resembled other of 2022, but given that no progress appears to
facilities that FERC had previously ruled did have been made on construction, it will almost oversight can
not require authorisation under US federal law. certainly now be delayed. become a reality
PREPA, meanwhile, stressed that shutting down NFE suffered a setback in January when
the terminal would force its TPP to switch from Appalachia Midstream withdrew its application
gas to diesel, a dirtier fuel that would emit more to the Pennsylvania Department of Environ-
pollution. mental Protection (DEP) for the construction
of a gas pipeline that would have supplied the
FERC ruling and court appeal Wyalusing plant.
The regulatory review did not prevent NFE from In late August, opponents of the LNG plant
wrapping up construction and then bringing sought to challenge an extension for an air per-
the LNG import terminal online in March 2020. mit for the facility, and the fact that NFE is seek-
However, it drew more attention to the project ing an extension suggests it still wants to move
– and may have influenced FERC’s decision, forward with the project, but its status appears
which was finally handed down in March of this increasingly uncertain.
year. The entire plan for the liquefaction and
In its ruling, the commission declared that it export of gas from the region still needs to over-
did have jurisdiction over the LNG import ter- come various regulatory, logistical and legal
minal and stated that NFE should have sought hurdles. The fact that local environmental and
its approval to build and launch the facility. It community groups are calling for a FERC review
said that it was giving the company 180 days to shows that they still view the project as having
apply for official authorisation to operate the the potential to be built. And NFE’s experience
terminal – and stated that the terminal could in Puerto Rico shows that additional regulatory
remain online in the interim, as halting opera- oversight can become reality once a project is
tions would not be in the public interest. being built, or even already operational. ™

NFE’s LNG terminal is near San Juan (Photo: Naturgy)

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