FERC Wants LNG Plants to Skip Some Case-by-Case Reviews
Published Date: 10/20/2026
Proposed Rule
Summary
The Federal Energy Regulatory Commission wants to make it easier for liquefied natural gas (LNG) plants to get approval for certain activities without needing a full case-by-case review. This change affects LNG plant operators by speeding up the process and cutting red tape, with comments open until December 21, 2026. It could save time and money while keeping safety and environmental rules strong.
Analyzed Economic Effects
6 provisions identified: 4 benefits, 1 costs, 1 mixed.
Blanket authorizations for LNG plants
The Commission proposes an LNG "blanket" program that would let operators authorize certain activities at liquefied natural gas plants without filing case-specific applications under sections 3 or 7 of the Natural Gas Act. The program is intended to streamline reviews, increase flexibility, and reduce regulatory burden; comments on the proposal are due December 21, 2026.
Automatic authorization eligibility rules
An activity would be eligible for automatic authorization if it does not: (1) increase the plant's authorized capacity; (2) expand the authorized vertical or horizontal extents within the plant footprint; or (3) cause flows, levels, volumes, pressures, temperatures, compositions, or loads outside the design limits of affected facilities and the remaining plant. The proposed rule defines "capacity," "footprint," and "design limits" in Sec. 153.102.
Section 7 LNG plants included
The Commission proposes that LNG plants authorized under NGA section 7 (e.g., interstate peak-shaving/storage facilities) be eligible for the blanket program. For those section 7 plants, the Commission proposes to impose the same rate-related requirements as apply under the existing pipeline blanket certificate program.
Environmental and engineering compliance conditions
The proposal would attach standard environmental and engineering design conditions and other statutory and regulatory compliance requirements to blanket-authorized projects to address impacts and ensure compliance with laws such as NEPA, the Endangered Species Act, and the Clean Water Act. Projects must continue to comply with USCG, PHMSA, and other permitting agency regulations.
60- and 90-day prior notice windows
Under the proposal, certain activities would require prior notice: a 60-day prior notice period would apply to activities that increase authorized capacity but remain within the plant footprint and design limits, while construction of new LNG facilities or auxiliary systems outside the footprint would be subject to a 90-day prior notice period. If a timely protest is filed and not withdrawn, the activity would be treated as a case-specific application.
No cost limits on LNG blanket projects
Unlike the existing pipeline blanket certificate program, the proposed LNG blanket program would not apply dollar-based cost limits to eligible automatic or prior-notice activities. The Commission states it will not use project cost as a proxy for eligibility.
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Key Dates
Department and Agencies
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