FERC Approves MVP’s Southgate Gas Pipeline Extension
The Mountain Valley Pipeline (MVP) achieved significant
milestones, securing two federal approvals from the Federal Energy Regulatory
Commission (FERC), The Roanoke Times reported.
The first approval allows for increased rates on the transportation
of natural gas through the 303-mile pipeline, while the second grants additional time
for the construction of a North Carolina extension known as the Southgate
Project.
Over its nearly decade-long existence, the MVP has encountered
formidable opposition, contributing to construction delays and a surge in
project costs.
FERC, in its order, acknowledged Mountain Valley’s revised cost of
service and recourse rates, stating, “Mountain Valley has provided sufficient
support for its revised cost of service and revised recourse rates.”
The rate change, according
to Mountain Valley spokeswoman Natalie Cox, will not affect previously
negotiated agreements with current shippers.
The second FERC approval pertained to the Southgate Project, a
75-mile extension into North Carolina. Initially proposed in 2018, the project
faced delays due to legal challenges against MVP's government permits.
After a law fast-tracked the main pipeline’s completion in June, Mountain Valley sought a three-year extension for Southgate, which still needs to obtain at least two state permits, with no current estimate for the commencement of work.
Regulator
Clears Trans Mountain, Completion Back On
The Canada Energy Regulator (CER) approved a request for a change
in construction for the final stretch of the Trans Mountain oil pipeline expansion project, clearing the
path for its completion early this year.
This
did not happen before things got a little dicey, though. The CER earlier
rejected the change, which Trans Mountain said at the time could result in a
two year delay.
The 590,000-bpd expansion will nearly triple the flow of crude on
Trans Mountain from Alberta to Canada’s Pacific Coast. he expanded pipeline
will increase access for Canadian oil to refineries on the U.S. West Coast and
in Asia.
Canada’s crude oil production increased
steadily for most of the last 13 years.
Most new growth in Canada’s crude oil
production is concentrated in the landlocked province of Alberta. In 2022,
Alberta’s crude oil production accounted for 82.7% of total crude oil
production in Canada, up from 76.1% in 2012.
Currently, more crude oil flows from Canda to the United States
than to any other country by a wide margin.
Santos’ Subsea Pipeline Clears Construction Hurdle
Australia’s
Santos can proceed with construction of an undersea pipeline vital to its $4.3 billion Barossa
gas project after a court ruled in favor of the oil and gas firm in a dispute
with an Indigenous man looking to pause the work.
Work on
the pipeline, which will connect the Barossa gas field to a
processing plant in the northern Darwin, was put on hold by court order in
November after a suit by a member of an Indigenous group regarded as
traditional land owners from the nearby Tiwi Islands.
However,
Justice Natalie Charlesworth dismissed Munkara's application and lifted the
November court injunction, opening the door for Santos to commence work on
the pipeline.
The Barossa project, co-owned by South Korean energy company SK
E&S and Japan’s JERA, still needs several environmental plans approved to
proceed. A revised drilling plan was approved by the petroleum regulator in
December.
Total Looks at Land for Uganda, Tanzania Pipeline Projects
Lionel Zinsou, an expert
in African economic development, will evaluate TotalEnergy’s land acquisition
program conducted in Uganda and Tanzania as part of the Tilenga and East
African Crude Oil Pipeline (EACOP) projects.
As the land acquisition
process draws to a close, this process will assess the actions taken by
TotalEnergies EP Uganda and EACOP to contribute to the improvement of the
living conditions for the people affected by these land acquisitions and
suggest additional measures to be implemented if needed.
The mission will submit
its report by April 2024, and its conclusions will be shared with the Tilenga
and EACOP project partners.
The Tilenga and EACOP
projects include a land acquisition program covering 6,400 hectares, carried
out on behalf of the Ugandan and Tanzanian governments.
This program concerns
19,140 households and communities owning or using plots of land and includes
the relocation of 775 primary residences. To date, 98% of the households
concerned have signed compensation agreements, 97% have received their
compensation and 98% of households to be relocated have taken possession of
their new homes.
CCUS Project Secures Bulk
of ROW Needed in North Dakota
Summit Carbon Solutions
acquired 80% of the right-of-way (ROW) needed for its proposed carbon capture,
transport, and storage project across North Dakota.
This comes after the
Public Service Commission (PSC) initially denied the company’s permit,
prompting the company to undertake extensive rerouting that added 12 miles to
the routes.
“Working with the
Summit team was fair and mutually beneficial,” said Bruce Speich, a Milnor,
North Dakota landowner. “Together, we’re making a big difference for the future
of agriculture and energy in North Dakota.” P&GJ