RBN Energy

For decades, gas-gathering pipelines located in rural areas largely escaped the federal scrutiny that was primarily focused on transmission pipelines. But all that has changed with final publication of the so-called Mega Rule, which applies federal pipeline safety regulations to hundreds of thousands of miles of gas-gathering pipelines — previously not subject to federal safety regulation — for the first time. In today’s RBN blog, we look at the history behind the three-part Mega Rule, what it’s designed to do, and the challenges pipeline operators will face to stay in compliance.

A simple problem can be solved with a simple solution, but more complex problems require a more nuanced approach, often using a combination of strategies. That’s the case with plans to mitigate methane emissions, which are not only potent and prevalent, but notoriously hard to quantify, with little common ground among industry, the government and the public about what steps should be taken next. In today’s RBN blog we look at the different approaches the U.S. is taking to regulate methane emissions and address other clean-energy priorities.

Without a doubt, the two biggest changes to U.S. natural gas markets in the last 15 years have been the Shale Revolution and the development of LNG exports. These completely upended the way gas flowed in this country, with the Northeast now home to the largest gas-producing basin and the Gulf Coast — including its fleet of LNG export terminals — now the U.S.’s largest demand center. Production growth in the Marcellus/Utica has stalled, however, largely due to the regulatory and legal challenges associated with building new pipeline takeaway capacity. One possible fix would be a new East Coast LNG terminal, which in addition to having easy access to cheap, almost-local gas would also be close to gas-hungry European markets. But just how likely is such a project? In today’s RBN blog, we discuss the advantages and hurdles of developing LNG export capacity on the East Coast.

After the catastrophic experience of Winter Storm Uri in February 2021, the Electric Reliability Council of Texas was restructured, with new statutory requirements and a whole new cast of characters. The Texas Railroad Commission (TRRC) put in place a number of fixes, including more stringent reliability rules for natural gas suppliers, from producers to transmission pipelines. At the same time, booming LNG exports, largely to Europe, combined with growth in Permian production have created new pressures and opportunities around the Texas energy mix — as well as implications for the ongoing transition to low- or no-carbon energy sources. How can all of these issues be understood and addressed at once — and in a way that doesn’t bore us all to tears? In today’s RBN blog, we outline the major themes to be discussed during the Texas Energy Symposium being planned by the Energy Bar Association and the University of Texas Law School.

Total U.S. LNG export capacity is around 12 Bcf/d, including the still-commissioning-but-nearly-complete Calcasieu Pass. About 13.5 Bcf/d of U.S. natural gas supplies, or feedgas, is required to produce that much LNG, but feedgas demand has averaged just 10.5 Bcf/d over the past week despite still-soaring global gas prices and an undersupplied global LNG market. Two U.S. terminals are currently offline: Freeport LNG, which has been out of service since an explosion and fire in June, and now Cove Point LNG, which shut for annual maintenance October 1. Beyond those outages, which have taken about 2.75 Bcf/d of demand out of commission, LNG feedgas volumes have been extremely volatile, swinging as much as 2 Bcf/d within a week. Don’t expect this to last, however — with winter approaching, the return of both Freeport and Cove Point on the horizon, and the full startup of Calcasieu Pass in sight, feedgas demand will likely rise to new heights and soon consistently top 13 Bcf/d. In today’s RBN blog we take a closer look at the recent volatility in LNG feedgas and the potential demand coming this winter.

The recently passed Inflation Reduction Act (IRA) offers a lot of incentives, mostly in the way of tax credits, to advance the Biden administration’s clean-energy initiatives and reduce greenhouse gas (GHG) emissions. There are inducements for everything from carbon capture and electric vehicles to renewable energy and hydrogen production, but very few penalties. One exception is included in the new law’s Methane Emissions Reduction Program (MERP), which features the federal government’s first-ever fee on the emissions of any GHG. In today’s RBN blog, we look at recent attempts to mitigate methane emissions, how the new methane charge will work, and how it could one day be replaced by new federal rules.

The battle to restore energy reliability in Europe has breathed new life into North American LNG export projects — and into the Haynesville Shale in Louisiana, the closest supply basin to many of the planned and proposed liquefaction facilities. Gas production in the region has climbed more than 4 Bcf/d — an impressive 39% — since 2019 and we expect it to grow nearly as much over the next three years. The big question on everyone’s mind, however, is whether there will be enough pipeline capacity to move that gas to where it’s needed on the coast. Pipeline capacity for southbound flows through the Bayou State is already showing signs of stress. Will recently completed and upcoming debottlenecking projects help stave off major supply and pricing disruptions? In today’s RBN blog, we provide our outlook on Haynesville production and the nature and timing of Gulf-bound pipeline projects.