FERC
Again Approves TC Energy’s Northwest Pipeline Expansion
TC Energy’s
plan to expand the capacity of its Gas Transmission Northwest Express pipeline by 150 MMcfd received the green
light from the Federal Energy Regulatory Commission.
In its
decision, FERC addressed arguments raised during rehearing and dismissed a stay
request concerning Gas Transmission Northwest’s (GTN) proposed natural gas
compression facilities project.
The project,
known as the GTN XPress Project, is a 1,377-mile (2,216-km) pipeline system that transports natural gas
from Kingsgate, British Columbia, to communities in Washington, Oregon and
California. The $75 million system can deliver as much as 2.7 Bcfd.
The
Commission initially
authorized the project Oct. 23,
2023, permitting the installation, construction, modification and operation of
certain compression facilities.
Following the authorization, several
parties — including environmental organizations and state entities — filed
rehearing requests challenging the certificate order, with accompanying motions
for a stay of the project pending further review.
The states involved are concerned that
the project may exceed the budget, burdening current customers. They argued
that the Commission erred in allowing GTN to recover $75.1 million in expansion
costs over 50 years, despite indications suggesting a shorter project lifespan
of 30 to 33 years.
In the filing, they contended that the
project could result in $20 million in outstanding costs after the initial
agreements lapse. Concerned that without new customers post-agreement, all
customers would bear the remaining costs, they question the necessity of the
project and anticipate a potential long-term decline in gas demand.
Commissioner Allison Clements dissented
from the order on rehearing for Gas Transmission Northwest’s GTN Xpress
Project, citing discrepancies between GTN’s sworn affidavits and its responses
to staff data requests. These contradictions, she argued, cast doubt on the
necessity and benefits of the project, urging the Commission to reconsider its
decision in accordance with its obligations under the Natural Gas Act and the
Administrative Procedure Act.
690-Mile
Permian Gas Pipeline Seeks FERC OK for 2028 Launch
DeLa
Express LLC, an affiliate of Moss Lake Partners, has formally requested approval
from the Federal Energy Regulatory Commission (FERC) to initiate the Pre-Filing
Review Process for the proposed DeLa Express Project.
This
endeavor aims to transport natural gas from production sites in the Delaware
Basin, Texas, to markets in and around Lake Charles, Louisiana and would entail
the construction of 690 miles of a 42-inch natural gas transportation mainline
pipeline.
Additionally,
it requires five lateral pipelines, eight compressor stations, multiple meter
stations and related facilities. The DeLa Express Project is expected to
provide 2 Bcfd of new liquids-rich natural gas transportation capacity.
The
proposed timeline for the project includes conducting public open houses in May
and June, filing the Section 7 application in February 2025, and receiving the
FERC certificate by April 2026. Construction is planned for the second quarter
of 2026, with the project going into service in 2028.
DeLa
Express has already undertaken significant preparatory work, including
stakeholder outreach, agency consultations, project engineering, route
planning, environmental surveys and engagement with contractors.
The
company has also developed a preliminary Public Participation Plan to
facilitate stakeholder communications and public information dissemination
throughout the project lifecycle.
Williams
Scraps Northeast Plan, PA Plan Advances
A significant pipeline project aimed at transporting natural gas
through New Jersey to New York and under two bays has been terminated by
Williams.
Conversely, the company’s plans persist for the transportation of
liquefied gas from Pennsylvania via tanker trucks, despite regulatory hurdles.
Environmental activists, who had vehemently opposed both initiatives, received
conflicting news on May 3, as federal regulators charted distinct courses for
the two ventures.
The decision, conveyed to the Federal Energy Regulatory Commission
(FERC), signaled the project’s cessation, as Williams chose not to pursue an
extension for a crucial construction application.
Williams corroborated its decision in
a statement
to AP, affirming
its decision to cease pursuit of a federal certificate necessary for project
continuation. The company expressed continued faith in the Northeast Supply
Enhancement project’s capacity to offer a cleaner and more cost-effective
alternative to heating oil.
However, it stated that, at present, it
would not seek an extension of the certificate, effectively halting the
initiative.
While the Northeast Supply
Enhancement pipeline initiative met its end, plans for
LNG transport through Pennsylvania and New Jersey remain on course. Delaware
River Partners and Bradford County Real Estate Partners conveyed their
unwavering commitment to their proposed project, involving the liquefaction of
natural gas in Wyalusing, Pennsylvania.
From there, the LNG would be transported to an export facility in
Gibbstown, New Jersey, via tanker truck, as opposed to the initially proposed
rail transport. Despite a federal moratorium on liquefied natural gas transport
by rail last September, the companies affirmed their intentions to proceed with
the project.
They cited the design of the Wyalusing facility, which circumvents
the need for rail transport, as a pivotal factor in their decision to press
forward with their plans.
Venice
Pipeline Gets Approval to Begin Service in Louisiana
Texas Eastern
Transmission gained approval from U.S. regulators to start service for a
natural gas pipeline associated with its Venice
extension project in Louisiana.
The Venice
extension was designed to supply gas to Venture Global LNG’s Plaquemines LNG
export plant in Louisiana, which is under construction and expected to enter
service between 2024 and 2026.
U.S. Federal
Energy Regulatory Commission (FERC) granted Texas Eastern’s March 26 request to
commence service of the 3-mile (4.8-km), 36-inch Venice extension pipeline, according to Reuters.
The U.S.
Energy Information Administration (EIA) has said the $500 million Venice
extension would have a capacity of 1.3 Bcfd. The Plaquemines facility is
designed to process 2.6 Bcf/d to produce LNG.
Other pipes under
construction that will also provide gas to Plaquemines include Texas Eastern’s
Gator Express and U.S. energy company Kinder Morgan’s Tennessee Gas Evangeline
projects.
White
House Wants Enbridge Pipeline Shutdown Reconsidered
The Biden administration asked a U.S.
appeals court to tell a lower court to rethink its order that would require
Enbridge to drain portions of a total 540,000 bpd — mostly Canadian oil — from
its Line 5 pipeline.
In friend-of-court brief, the U.S.
Department of Justice (DOJ) told the 7th U.S. Circuit Court of Appeals that
forcing Enbridge to drain portions of its line, which is part of the wider
Mainline network, is unfair to the Canadian operator.
The oil pipeline runs through Native
American tribal land in Wisconsin, according the court records.
The U.S. said the lower court was correct
and find Enbridge is trespassing on the tribal land, but they said the court
should reconsider its decision ordering Enbridge to stop operating portions of
the pipeline by 2026.
An Enbridge
spokesperson said shutting the pipeline would not be in the public interest,
and that the company continues to seek a solution that would not disrupt the
flow of oil. The company has offered the Band $80 million to settle the
dispute.
Canada, which is also not a party to the case, had previously
argued in an amicus brief that the pipeline should be kept open due to the
treaty.
Black Bear’s Ozark Supply Access Project Goes in Service
Black Bear Transmission said subsidiary
Ozark Gas Transmission placed its Supply Access Project online.
The project
includes two miles of natural gas loop pipeline, a new compressor station and two
new pipeline interconnects. It aims to enhance
gas supply reliability for Ozark shippers, addressing disruptions experienced
during Winter Storm Uri in February 2021.
“This project
highlights Black Bear Transmission’s ability to utilize its existing pipeline infrastructure network to enhance
services to customers while minimizing environmental impact,” said Rene
Casadaban, CEO of Black Bear. “I am pleased with the successful execution of
this project through the contracting, permitting, regulatory and construction
phases and would like to thank everyone involved for their contributions.”
These
additional facilities will create access to new supply interconnections with
major interstate pipelines from the east end of the Ozark Transmission system.
Ozark
Transmission’s three largest customers, Arkansas Oklahoma Gas (AOG), Arkansas
Electric Cooperative Corporation (AECC) and Black Hills Energy signed long-term
transportation agreements to support the Project. P&GJ