Shippers oppose Tennessee Gas RSG pooling proposal

Some major shippers on Tennessee Gas Pipeline (TGP) are protesting against TGP's mid-December proposal to implement a responsibly sourced natural gas (RSG) supply pooling service at some locations across the pipeline.

The proposed service is supposed to help certified producers with a supply aggregation agreement with TGP add their certified natural gas at any of the five pooling points. It is also aimed at enabling suppliers and customers to trade RSG at non-physical locations. That would serve end-users, utilities, power plants and LNG facilities connected to TGP, according to TGP.

This is the first proposal of its kind by an interstate pipeline and may become a model for future pooling proposals by other US pipelines.

TGP this week is expected to file a revised proposal to postpone the effective date of the pooling service to 1 March from the original date on 17 January. This comes after customers filed three protests requesting changes to the proposal or asking the Federal Energy Regulatory Commission (FERC) to set a proceeding.

The proposal would allow TGP to unilaterally decide which third parties qualify to give ESG certifications, protesters said. The independence of the third parties qualified to certify cleaner natural gas is needed to further develop the industry, according to protesters.

Protesters said FERC should allow time for TGP to develop a certificate tracking and retirement mechanism for ESG-certified gas before adding the proposed five market trading locations to avoid a disconnect between supply and transportation logistics.

By Nola Z Valente