A federal court has ruled that FERC has authority to regulate New Fortress Energy Inc.’s (NFE) small-scale liquefied natural gas (LNG) terminal in Puerto Rico, rejecting an argument that the Commission revised definitions of a pipeline to assert authority.

A panel of three judges with the U.S. Court of Appeals for the District of Columbia Circuit ruled Tuesday that the Federal Energy Regulatory Commission proved the LNG facility was built without required approval under the Natural Gas Act (NGA). FERC is the lead federal agency for approving LNG terminals, and it cooperates with state and federal agencies during the permitting process.

What Is A Pipeline?

In the opinion delivered by Circuit Judge David Tatel, NFE failed to argue its 75-foot pipe connecting the terminal to a...