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FERC pipeline approvals on the rise in 2017

The Federal Energy Regulatory Commission appears to have made up for lost time this year in approving natural gas pipeline capacity.

The agency certificated 23.5 Bcf/d of new pipeline capacity in the period from January through October, up 62.8% from the 14.4 Bcf/d approved the same time last year, according to FERC's October 2017 energy infrastructure report released on Dec. 4.

The 2017 year-to-date number tops the 18.2 Bcf/d backed by the commission in all of 2016, and it continues an upward trajectory that began in 2011, when the agency approved 4.2 Bcf/d of pipeline capacity.

The bump up from year-ago levels comes in spite of a six-month lapse this year starting Feb. 6, when FERC lost its quorum and was unable to approve any major natural gas pipelines. Since FERC's quorum was restored in August, the agency has approved 13.9 Bcf/d worth of pipeline projects.

The total through October covers 38 projects and 2,508 miles of pipeline, compared with 47 projects and 1,137 miles of pipeline the same period in 2016.

In October alone, FERC approved 8.4 Bcf/d worth of pipeline projects, including some giant projects like the 600-mile, 1.5 Bcf/d Atlantic Coast pipeline project and the 301-mile, 2 Bcf/d Mountain Valley pipeline project, as well as the 2.6 Bcf/d Valley Crossing pipeline that would allow exports to Mexico.

The 7.2 Bcf/d of capacity placed into service for the period also exceeds the 5.85 Bcf/d entering service through October a year earlier.

The report came after FERC Chairman Neil Chatterjee offered his analysis that stakeholder opposition is a key cause for additional time required for gas pipeline reviews at the agency, amid increased litigation from environmental groups.

Turning to LNG, FERC approved one project capable of delivering 93 MMcf/d. That total is short of last year's total of four projects totaling 3.2 Bcf/d, but the difference reflects the lack of projects this year ripe for final FERC action.

On the power side, the report showed a rise in installed natural gas fired generation, with 10.6 GW entering service from January to October, from 8.3 GW a year earlier. Installed wind generation also increased to 5 GW from 3.1 GW during the period, while solar dropped to 3.4 GW from 5.7 GW.

New generation additions proposed by November 2020 dwarfed proposed retirements, the report showed, with 230.7 GW of new generation and 37.6 GW of retirements.

Maya Weber is a reporter for S&P Global Platts, which, like S&P Global Market Intelligence, is owned by S&P Global Inc.