BP Energy Company, Equinor Natural Gas LLC, and Shell NA LNG LLC filed a complaint with the Federal Energy Regulatory Commission on Dec. 4 alleging that Dominion Energy Cove Point LNG LP imposed fuel costs associated with a “2004 terminal expansion” on each of them, violating commission regulations.

• LNG import facilities that were initially certified under section 7 of the Natural Gas Act were subject to a broader range of regulations including the open access service and cost-of-service rulemaking. However, Dominion proposed an expansion in 2004 under section 3 of the act that allowed negotiations for private contracts without regard to open access rules or rate and tariff oversight.
• Dominion is prohibited from allocating costs attributable to expansion to the petitioners, who receive service under section 7. As the import facilities, called “mixed use” facilities, provides services under both the sections, petitioners are protected from subsidizing the expansion, service degradation attributable to the expansion, and undue discrimination of service.
• Although Equinor was previously a customer under the expansion, it turned back the capacity to Cove Point. The complaint notes that Dominion issued notices increasing fuel assessments for period starting January 1, 2017 through April 8, 2018, resulting in subsidization of the expansion by the petitioners.
• BP Energy operates as a subsidiary of BP plc. Equinor Natural Gas LLC, f/k/a Statoil Natural Gas LLC, is a subsidiary of Statoil ASA. Shell NA LNG LLC operates as a subsidiary of Royal Dutch Shell plc.