Natural Gas Pipeline Projects Gain Last-Minute Approvals by FERC

Researched by Industrial Info Resources (Sugar Land, Texas)--As pipeline developers counted down the days to when Norman Bay would resign from the Federal Energy Regulatory Commission (FERC), a few natural gas pipeline developers managed to squeeze through regulatory approvals at the eleventh hour. Bay resigned from FERC on Friday after being replaced as chairman of the commission. President Donald Trump appointed Cheryl LaFleur as acting chairman of FERC, prompting Bay to resign from the commission and leaving it with only two acting commissioners--not enough to make the quorum required to approve future projects.

However, three natural gas pipeline developments have received approval before Bay's leaving: Williams Partners' (NYSE:WPZ) Atlantic Sunrise project, National Fuels Gas Supply Corporation's (Erie, Pennsylvania) Northern Access project and Energy Transfer Partners' (NYSE:ETP) (Houston, Texas) Rover natural gas pipeline project. These represent the last FERC pipeline approvals before the agency finds a new commissioner to make up the quorum of at least three commissioners required to give the go-ahead for new projects.

The Atlantic Sunrise project will add 1.7 billion cubic feet (Bcf) of gas per day to Williams' Transco pipeline system. The project will carry natural gas from the Marcellus and Utica shales to tie into pipeline systems to deliver gas as far south as Alabama and to the Cove Point liquefied natural gas (LNG) facility in Lusby, Maryland. For more information, see Industrial Info's project reports on the north and south expansions to the pipeline.

Energy Transfers' $4.2 billion Rover project is designed to transfer gas from the Marcellus and Utica areas to points in western Ohio, West Virginia, Michigan and Ontario, adding about 3.25 Bcf per day of natural gas into the existing delivery system. The project also received the go-ahead from FERC late last week. Energy Transfer expects to put the first phase of the project in service by this summer. For more information, see Industrial Info's project reports on the Ohio, Michigan and West Virginia portions of the pipeline project.

National Fuels' Northern Access project consists of constructing approximately 100 miles of pipeline in Pennsylvania and New York to provide natural gas to markets in western New York, New England, Canada and other U.S. markets. For more information, see Industrial Info's project reports on the New York and Pennsylvania sections of the pipeline.

While these pipelines have been approved before the quorum at FERC dissolved, other pipelines that were waiting for quick approval may now be waiting for FERC approval for a while. These include Spectra Energy Corporation's (NYSE:SE) (Houston) Nexus natural gas pipeline and Columbia Gulf Transmission LLC's (Houston) Leach Xpress natural gas transmission line, which are also geared at transferring Marcellus and Utica shale natural gas throughout the U.S.

No word has been released as to when a new FERC commissioner may be appointed to approve further pipeline projects in the U.S., but judging by the Trump administration's pro-energy stance, this may very well be sooner rather than later.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.