BP seeks FERC to act quick on Dominion Cove Point LNG remand

BP filed a motion for expedited action on remand in response to the decision of the US Court of Appeals for the District of Columbia Circuit in BP v. FERC in regards to capacity turn back on Dominion Cove Point LNG.

Dominion Cove Point LNG is in the process of developing its export facility near Lusby, Maryland at the existing import facility.

In its motion, BP said the Court remanded the case to FERC seeking further explanation of the 2012 agreement allowing Statoil the right to simultaneously turn
back storage, regasification and Cove Point pipeline capacity. BP challenge the decision claiming it is “unduly discriminatory “.

FERC denied BP’s protest, finding that BP and Statoil were not similarly situated, saying that “BP is an LTD-1 shipper receiving open access terminal services provided under section 7 of the NGA, while Statoil is an expansion customer receiving non-open access service under NGA section 3.”

BP filed a petition for review of the decision by FERC to deny the request for rehearing, following which US Court of Appeals of DC circuit remanded the case for further explanation.

BP argues that BP and Statoil are similarly situated for purposes of turn back rights as the storage and regasification services that the two companies receive are for all practical purposes identical.

In its motion for expedited action on remand, BP is requesting FERC the authorization for proportional capacity turn back rights to those granted to Statoil, with effect from January 1, 2017.

LNG World News Staff