FERC chair seeks consensus on new pipeline policy

Market: Natural gas
19/01/23

The US Federal Energy Regulatory Commission (FERC) will try to find a way to move forward with a stalled update to a decades-old policy for permitting natural gas infrastructure, the agency's new acting chairman said.

FERC needs to move forward with a pipeline policy "that has stakeholder buy-in," that is sustainable and that will allow for the approval of projects needed for the reliability of the natural gas delivery system, chairman Willie Phillips said. President Joe Biden named Phillips as acting chairman on 3 January, making him the first Black chairman to lead the agency.

"I think it is important to have durable policies come out, so I am focused on working with our colleagues to build consensus," Phillips said after his first FERC meeting serving as acting chairman.

FERC last updated its permitting policy in 1999, a decade before the shale boom fueled a massive buildout of gas infrastructure and a corresponding blowback from landowners and environmentalists. The agency first started reconsidering the policy in 2018, under a Republican chairman, but the measure stalled.

FERC's former chairman Richard Glick tried to update the agency's pipeline policy a year ago to put a greater focus on scrutinizing the climate effects of gas infrastructure, and later voted to put the change on hold in response to gas sector criticism. But the policy strained his standing with US senator Joe Manchin (D-West Virginia), who declined to hold a hearing on his nomination to a new term.

Phillips has yet to say what type of pipeline policy he wants FERC to adopt. But he said a focus on reliability and environmental justice would guide his approach to all issues at the agency. And he indicated that he was prepared to move forward with changes to the pipeline policy, even if FERC is not operating with its full complement of five commissioners.

"As a global matter, we're not waiting on anything," Phillips said. "We're moving forward, the commission will not sit on our hands on any important matters that need to move forward."

FERC is currently split between two Democrats and two Republicans, creating the possibility for deadlocked votes on major orders. Biden has yet to nominate anyone to fill the open seat at the agency, meaning the 2-2 split is likely to continue for at least a few months.

FERC often votes unanimously on orders but is struggling to find consensus on "very hard orders," Democratic commissioner Allison Clements said. Phillips said he has a track record throughout the career of building consensus, and he expects that to continue while leading FERC. Those efforts so far have had some success.

"Mark your calendars," Republican commissioner James Danly said, "I do not have a single dissent today."

By Chris Knight

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Norway plans to cut GHGs, but remain oil, gas producer

London, 10 April (Argus) — Norway's government has proposed a greenhouse gas (GHG) emissions reduction of a minimum 70-75pc by 2035, from a 1990 baseline, but has also committed to the country remaining "a stable and predictable supplier of oil and gas produced with low emissions". The government today set out plans for a 2035 GHG reduction target, as well as a wider climate plan for the country. The 2035 GHG reduction targets build on Norway's 2030 goal of "at least" a 55pc reduction in GHGs, again from 1990 levels. Norway has a legislated goal of "a low-emission society" by 2050 — GHG reductions of 90-95pc from the 1990 baseline. Norway's government underlined its commitment to Paris climate agreement goals and phasing out the use of fossil fuels "towards 2050", but also said that it would "not prepare a strategy for the end phase of Norwegian oil and gas". "The government's plan is about phasing out emissions, not industries", it said, noting that Norway is "a significant contributor to Europe's energy security". Norway is the largest producer and only net exporter of oil and gas in Europe. "The government will further develop the petroleum industry and facilitate the future provision of fields… production will continue to be efficient and with low emissions," the government said. It aims for the country's oil and gas sector — the country's highest-emitting industry — to bring emissions from production to net zero in 2050. The bulk of oil and gas emissions are from downstream use — known as scope 3. Norway plans to achieve the majority of its proposed 70-75pc GHG cuts through national measures, including reduced fossil fuel use and both technical and nature-based carbon removals. It also plans to purchase emissions reductions from outside the EU and European Economic Area. This refers to internationally transferred mitigation outcomes (ITMOs) — emission credits — under Article 6 of the Paris climate agreement. Norway's parliament will consider the proposals. Once legislated in the country's climate act, Norway plans to communicate its updated plans to the UN. Signatories to the Paris climate agreement are expected to submit updated climate plans — known as nationally determined contributions (NDCs) — to UN climate body the UNFCCC every five years. The deadline for NDCs setting out climate goals up to 2035 was in February, but many countries have yet to submit plans . By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Trump coal plant bailout renews first term fight

09/04/25

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09/04/25

Trump coal plant bailout renews first term fight

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What do tariffs mean for the global gas market?

09/04/25

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09/04/25

What do tariffs mean for the global gas market?

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09/04/25

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09/04/25

German coalition negotiations come to an end

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EU states propose 10pp flexibility on EU gas storage

09/04/25

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09/04/25

EU states propose 10pp flexibility on EU gas storage

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