Four natural gas pipeline projects that would add a combined 6.9 Bcf/d (196mn m3/d) of takeaway capacity to the Marcellus and Utica shales could face lengthy delays because of an upcoming vacancy at the US Federal Energy Regulatory Commission (FERC).
FERC's review of those pipelines is nearing completion, but it may be unable to finish that work before agency chairman Norman Bay resigns on 3 February. After Bay leaves, FERC will fall short of the three-member quorum needed to approve pipelines. Bay announced his resignation after President Donald Trump named FERC member Cheryl LaFleur to replace him as acting chairman.
Bay's departure could mean delays for the 1.7 Bcf/d Atlantic Sunrise pipeline, the 3.3 Bcf/d Rover pipeline, the 1.5 Bcf/d Nexus pipeline and the 0.5 Bcf/d Northern Access pipeline. Northeast US gas producers had hoped those pipelines would relieve bottlenecks that have depressed gas prices in Pennsylvania, West Virginia and Ohio.
Even if Trump acts soon to fill vacancies at FERC and the US Senate confirms them in a matter of weeks, a short absence of a quorum could delay completion of some pipelines by months because of limits on when construction can take place. Gas groups were heartened by comments from Senate Energy and Natural Committee chairman Lisa Murkowski (R-Alaska) that she would make it a "top priority" to confirm FERC nominees.
"We really hope they can get a nomination and confirmation as soon as possible," Natural Gas Supply Association executive vice president Patricia Jagtiani said.
US producer Antero, the anchor customer on Rover, on 24 January warned FERC that failure to approve the project soon would cause pipeline developer Energy Transfer Partners to miss a tree-clearing window that ends on 31 March, delaying the $3.8bn pipeline by up to a full year. The pipeline would transport Utica gas into northwest Ohio and the Union hub in Dawn, Ontario, and has a planned in-service date of mid-2017.
US midstream company Williams likewise told FERC this month that it could miss a tree-clearing window for the Atlantic Sunrise project unless it receives final approval by 16 February. Completion of the $3bn pipeline, which would transport gas from Pennsylvania into the Transcontinental pipeline, has already been delayed from late 2017 to mid-2018.
Spectra Energy's Nexus pipeline, which would transport Appalachian shale gas to Michigan for further delivery to the Union hub, could face delays from a lack of a quorum, as could National Fuel Gas' Northern Access pipeline. That pipeline would transport gas from Pennsylvania into upstate New York.
LaFleur yesterday said FERC would try to get "as many orders out as possible" while Bay remains at the agency.
Pipeline developers hope FERC can act to approve their projects in the next week. Spectra said it remains hopeful for "swift action" on its pending pipeline applications. Williams said it believes the Trump administration will prioritize filling vacancies at FERC, based on the president's support for pipeline infrastructure. Energy Transfer Partners and National Fuel Gas did not respond for comment.
