America needs permit
reform. The preferred and sensible approach is to reform it through bipartisan
Congressional action. For now, the Trump administration is eliminating
government red tape and approving projects as fast as they can. Among projects
with significant public opposition, renewable energy projects are not likely to
see such approvals, but fossil fuel projects will. LNG projects are getting
approved faster.
Pipeline
projects are also expected to get faster with faster NEPA reviews. This post is
about two proposed new pipeline projects in the Northeast. Both projects plan
to deliver natural gas from the Marcellus and Utica Formations. The first is
the Borealis Natural Gas Pipeline Expansion Project proposed by Midstream
company Boardwalk, the parent company of Texas Gas. It is set to deliver
natural gas from the Marcellus and Utica to Louisiana with access to the
Midwest and the Gulf Coast.
The
second project is a revival of a project that was scrapped several years ago
due to New York’s Environmental Department which did not approve water impact
permits. This is the Constitution Pipeline proposed by Midstream company
Willliams. This project may still have some legal challenges ahead as it
becomes a state vs. federal issue. However, Congressional Republicans have
indicated they are open to forcing approval. Northeastern governors have also
recently indicated support for the revived pipeline.
The
Borealis Project is set to deliver up to 2 BCF/day which makes it a large
pipeline. Texas Gas indicates that they are open to upstream extensions of
their pipeline systems into different parts of the Marcellus and Utica play
areas in Ohio, West Virginia, and Pennsylvania.
The open season runs from
April 1 through April 30, 2025. Interested shippers must execute a
confidentiality agreement to receive more detailed information. The preferred
transportation term is 20 years, though other durations will be considered.
Following the open season,
Texas Gas will begin discussions with participants and could move toward
binding commitments for capacity.
Williams’ Constitution was set to deliver Marcellus gas from Northeastern Pennsylvania to New York and New England. The project was abandoned in 2020. The specs are a 30-inch diameter, 124-mile, 660 MMcf/d pipeline. Williams CEO Alan Armstrong indicated at CERAWeek that he would want support from all the governors including New York’s Kathy Hochul and assurances from New York and Massachusetts that they would not ban natural gas hookups before he would fully commit to the project.
The need for more natural gas capacity in the region is reflected by winter price spikes along with higher winter prices than the Henry Hub index this year.
Armstrong also noted that the lack of regional gas
capacity is resulting in data centers bypassing the region. He also said that
there is plenty of pipeline demand in friendly states in the south so they will
be more selective about projects like Constitution that face possible
opposition that could become costly for them. Armstrong also made a rather
memorable statement that permitting costs for pipelines typically exceed the
cost of the steel pipeline itself. Permitting risks and costs are among their
biggest risks, he noted.
References:
Boardwalk’s
Texas Gas Launches Open Season for 2Bcf/d Marcellus-to-Louisiana Pipeline
Expansion. Mary Holcomb. Pipeline & Gas Journal. April 1, 2025. Boardwalk’s
Texas Gas Launches Open Season for 2 Bcf/d Marcellus-to-Louisiana Pipeline
Expansion | Pipeline and Gas Journal
Constitution
Natural Gas Pipeline a Go – With Northeastern Governors' Support, Says Williams
Chief. Carolyn Davis. Natural Gas Intelligence. March 13, 2025. Constitution
Natural Gas Pipeline a Go – with Northeastern Governors Support, Says Williams
Chief
Texas
Gas Gauging Support to Move More Appalachian Natural Gas to Midwest, Gulf Coast
Markets. Carolyn Davis. Natural Gas Intelligence. April 3, 2025. Texas
Gas Gauging Support to Move More Appalachian Natural Gas to Midwest, Gulf Coast
Markets
No comments:
Post a Comment