U.S. House Passes Two Pipeline Permit Reform Bills; FERC in Charge
Last week, the U.S. House of Representatives passed two bills that will make it easier to build natural gas pipelines in the northeast and elsewhere. The House passed H.R. 3898, the Promoting Efficient Review for Modern Infrastructure Today (PERMIT) Act, making it more difficult for states to reject pipeline and related projects based on the Clean Water Act. No more cases of New York and other states blocking federally-approved pipelines from getting built for years on end. The House also passed H.R. 3668, the Improving Interagency Coordination for Pipeline Reviews Act, which designates the Federal Energy Regulatory Commission (FERC) as the lead agency in the interstate pipeline approval process. No more interference from the EPA, BLM, and other federal agencies attempting to stifle pipeline projects. Read More “U.S. House Passes Two Pipeline Permit Reform Bills; FERC in Charge”
Tailwater Capital LLC, an energy and infrastructure private equity firm based in Dallas, Texas, yesterday announced it has closed on the acquisition of a majority interest in Central Midstream Partners, LLC (originally established as Central Crude). Central Midstream provides liquids transportation, storage, and terminal services to support demand-pull customers across the Gulf Coast and in the Utica region. We have to confess we had not heard about nor written about Central Midstream before this announcement. 
When the Transcontinental Gas Pipe Line (Transco) was placed into service in 1950, it was hailed as the longest pipeline in the world and the largest single-project construction venture ever attempted. Today, Transco, now owned by Williams, transports about 16% of the natural gas consumed in the United States. More than a single pipeline, Transco is a network stretching nearly 10,000 miles, connecting South Texas to New York. It’s hard to overstate the importance of this pipeline system to the country and to the Marcellus/Utica region. It carries an estimated 4.0 to 4.5 billion cubic feet (Bcf) of M-U molecules every day. We have written over 1,100 posts on MDN, either focusing on or prominently mentioning Transco (
The rapid expansion of data centers, driven by AI and cloud computing, is creating a surge in energy demand that exceeds renewable capabilities, forcing a shift toward natural gas. Good news for the Marcellus/Utica. However, building new pipelines to handle the extra gas needed is not an overnight process. Industry experts at the recent LDC Gas Forums’ Nat Gas to Power event proposed an ingenious solution that uses existing pipelines to move more gas to new data center customers. 
We suppose it’s no surprise that left-wing Congressional Democrats from North Carolina and Virginia are attacking two natural gas pipeline projects that are close to final approval and the start of construction. One project is Williams’ Transco Southeast Supply Enhancement Project (SESE), the other is EQT’s MVP Southgate project. Both projects would be built in the same general area, starting at the same point near Chatham, Virginia, and ending near Eden, North Carolina. Both have customers ready to take their gas. Southgate recently received a favorable environmental assessment (EA) from the Federal Energy Regulatory Commission (see 
In September, MDN told you that two major Kinder Morgan pipeline projects that will flow Marcellus/Utica molecules in the southeastern U.S. took a big step forward at the Federal Energy Regulatory Commission (FERC) with FERC actively working on an environmental impact statement (EIS) for both projects (see 
As MDN previously reported, TC Energy’s Virginia Reliability Project (VRP) in the Hampton Roads region (Virginia Beach, Norfolk, Newport News area) started construction in the second quarter of this year. It held a ceremony in September to commemorate the final weld (see 
Two pipeline kingpins are engaged in a deathmatch with the Federal Energy Regulatory Commission (FERC) to get their competing pipeline projects approved. One is Williams’ Transco Southeast Supply Enhancement Project (SESE), the other is EQT’s MVP Southgate project. Both projects would be built in the same general area, starting at the same point near Chatham, Virginia, and ending near Eden, North Carolina. Both claim they have customers ready to take their gas. In a July FERC filing, Williams said that its project could easily handle Southgate MVP’s capacity by adding meter tubes and regulation at an existing station (see 
Despite past difficulties in building new pipelines, the midstream sector is aggressively expanding, committing to over 34 Bcf/d (billion cubic feet per day) of new pipeline capacity by 2029, mainly in the Permian and Gulf Coast. However, some 5.6 Bcf/d of additional capacity is expected to come to the Marcellus/Utica region by 2029. This new supply, driven by anticipated demand from LNG exports and power for data centers, significantly exceeds the most bullish demand growth projections (18–27 Bcf/d by 2030). Analysts suggest this could lead to a temporary capacity surplus, or “overbuild.” Are we on the cusp of having too much of a good thing? 
Existing pipelines in the Marcellus/Utica region are testing the market for expansion. Two weeks ago, we told you that DT Midstream (50% owner of NEXUS Pipeline) is eyeing the growing AI data center market in northwestern Ohio as a customer for M-U molecules that flow through NEXUS (see 
In August, MDN told you that Black Bear Transmission (BBT), the owner of nine regulated short pipeline transmission systems in the Southeastern U.S. totaling approximately 1,700 miles of pipeline, with a throughput capacity of about 2.6 billion cubic feet per day (Bcf/d), was selling itself to Enstor Pipeline Holdings, LLC, for an undisclosed sum (see 
We continue to win so much, it feels strange. But hey, we can get used to it! Back in April 2021, we reported that the leftist Democrats who run the North Carolina Department of Environmental Quality (NCDEQ) had, for the third time, rejected giving the Mountain Valley Pipeline (MVP) Southgate project a necessary Clean Water Act (CWA) Section 401 water quality certification permit (see 
Powerhouse consulting firm McKinsey & Co. has released a new report titled, “The infrastructure imperative: Who benefits from pipeline expansion?” The report digs into some of the key considerations, upsides, and challenges of pipeline expansion for consumers, operators, and beyond. In the report, McKinsey analysts model two hypothetical infrastructure development plans for the Appalachian Basin—northward pipeline expansion and southward pipeline expansion—and compare them to a baseline scenario. The report finds a southward expansion could potentially reduce costs to consumers by $4-5 billion from 2025 to 2030 vs. reducing costs by $2-3 billion with a northward expansion.