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Experts: Resolve Gas Quality and Interchangeability Issues Without Government Action

Conflicts over gas quality and interchangeability standards should be resolved by LNG industry stakeholders, according to Ed Murrell, FERC’s deputy director of policy and rulemaking in the Office of Energy Markets and Reliability. “If you bring it to FER
November 13, 2006

Conflicts over gas quality and interchangeability standards should be resolved by LNG industry stakeholders, according to Ed Murrell, FERC’s deputy director of policy and rulemaking in the Office of Energy Markets and Reliability. “If you bring it to FERC, the pain and suffering will probably continue for some time,” he said yesterday at the Second Annual Platts Gas Interchangeability and Quality Forum in Houston. Jacob Dweck, a partner at Sutherland Asbill & Brennan LLP and principal with the LNG Solutions Group, commented, “[Interchangeability] is unlike siting of terminals” in that the debate does not involve the public and “offers the opportunity for intra-industry discussion” and resolution.

Murrell also cautioned against gas quality and interchangeability mandates, stating that U.S. LNG industry participants must be aware that competitors in the global gas market are capable of accepting “hotter” gas. Natural Gas Intelligence’s Daily Gas Price Index provides further coverage of the conference. [Subscription required]

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