I Need You - FERC's New Spire STL Decision Helps Secure Future of Key Gas Infrastructure

Determining whether to approve plans for interstate natural gas pipeline projects has never been an easy task for the Federal Energy Regulatory Commission. There are so many things to consider, chief among them the need for the pipeline, impacts on the environment and landowners along the route, and what it all means for gas customers. But as complicated as the decision-making process may be, at least pipeline developers, gas producers, and customers knew that once a new pipeline was approved by FERC, permitted, built, and put into service that the matter was closed — that is, the pipeline was here to stay. Now, in the wake of a groundbreaking court ruling on a new gas pipeline near St. Louis, things are not so certain. As it turns out, we’re intimately familiar with the matter, having just made the case that the 65-mile Spire STL Pipeline is an important addition to the regional pipeline network that provides supply diversity, improved reliability, and access to lower-cost gas. In today’s RBN blog, we consider the evolution of FERC regulation of gas pipelines and the new uncertainty that all affected parties face.

It’s so ironic. New England is only a stone’s throw from the burgeoning Marcellus natural gas production area, but pipeline constraints during high-demand periods in the wintertime leave power generators in the six-state region gasping for more gas. Now, with only minimal expansions to New England’s gas pipeline network on the horizon, the region is doubling down on a long-term plan to rely on a combination of gas liquefaction, LNG storage, LNG imports and gas-to-oil fuel switching at dual-fuel power plants to help keep the heat and lights on through those inevitable cold snaps. Today, we discuss recent developments on the gas-supply front in “Patriots Nation.”

Consider this fact: Three of every five barrels of crude oil produced in the U.S. are exported, either as crude oil or in the form of gasoline, diesel, jet fuel or other petroleum products. Sure, large volumes of crude and products are still being imported, but the net import number is dwindling toward zero — and if you count NGLs (ethane, propane, etc.) in the liquid fuels balance, the U.S. has been a net exporter since 2020. Yes, folks, exports are now calling the shots, and the role of exports is only going to become larger over the next few years. In today’s RBN blog, we discuss highlights from our new Drill Down Report on crude oil and product exports and why they matter more now than ever.