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Interstate Natural Gas Pipelines: Process and Timing of FERC Permit Application Review


The United States' supply of natural gas is growing due to technological improvements, such as horizontal drilling and hydraulic fracturing, which have increased producers' ability to extract natural gas from shale formations. Shale gas is projected to become the dominant source of the U.S. natural gas supply by 2040.1 The growth in U.S. shale gas production requires the expansion of natural gas pipeline infrastructure at the local level (to extract and gather the gas) and at the national level to transport natural gas from producing regions to consuming markets, typically in other states. Over 300,000 miles of interstate transmission pipeline already transport natural gas across the United States.2 However, if the growth in U.S. shale gas continues as projected, the requirement for new pipelines could be substantial. For example, an analysis by the INGAA Foundation, a pipeline industry research organization, estimates that the cost of new gas gathering and transmission pipelines (including storage), altogether, could average over $8 billion per year and total over $200 billion through 2035.3 This ongoing expansion has increased congressional interest in the role of the federal government in the certification (permitting) of interstate natural gas pipelines. The only schedule-related legislative proposal to date in the current Congress is the Natural Gas Pipeline Permitting Reform Act (H.R. 1900), which seeks to expedite the federal review of certificate applications by imposing deadlines on the agencies involved.4 This report provides an overview of the federal certification process for interstate natural gas pipelines. It discusses the length of the review for recent interstate gas pipeline applications-a topic of specific interest to Congress and industry. In this context, the report discusses the key provisions in H.R. 1900 and their implications for gas pipeline certificate approval. Bills: H.R. 1900


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1 R43138.pdf Jul 08, 2013 R43138 13 $29.95 Add to Cart

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Interstate Natural Gas Pipelines: Process and Timing of FERC Permit Application Review  [Order No: R43138  Release Date: Jul 08,2013  Pages: 13]