AGA Condemns Court Ruling Blocking Pipeline to the Northeast 

WASHINGTON – The American Gas Association condemns a decision by the United States Court of Appeals for the District of Columbia Circuit that would block the Federal Energy Regulatory Commission (FERC)-approved construction of a natural gas pipeline to serve New Jersey, Delaware, Maryland, New York, and Pennsylvania.  Despite the fact that 73% of its capacity is pledged to natural gas local distribution companies (LDCs) and the pipeline was 100% subscribed under long-term contracts, the court held there was insufficient evidence that the pipeline was required.  

FERC issued a pipeline certificate to Transcontinental Gas Pipe Line Company, LLC (Transco) in 2023 and issued approvals for parts of the project to enter service this summer. AGA filed an amicus brief with the court in support of Transco emphasizing that the pipeline would provide vital increased supply and added reliability to the Northeast region. 

“We know for a fact that the project will improve overall reliability and diversification of energy infrastructure in the Northeast, ease pipeline constraints, and help address current challenges including increased natural gas prices during the winter months for consumers” said Matthew Agen, AGA Chief Regulatory Counsel for Energy. “The court’s decision sets a dangerous precedent by dismissing the reliability needs of local distribution companies to satisfy the demand for energy during critical periods, such as life-threatening winter events.”  

The need for the pipeline is obvious: during the 2022 Winter Storm Elliott, a lack of available natural gas created reliability-threatening low pressures in delivery pipelines across the greater New York Metropolitan area. While detailed contingency planning and excellent implementation allowed local natural gas utilities to avoid the worst, if pressures in the area had continued to decline there could have been a loss of service requiring weeks or months of recovery while leaving untold customers in life-threatening cold without access to natural gas.  The additional capacity offered by the Transco pipeline could play a critical role in rectifying and preventing these critical shortages during future extreme weather events. Moreover, pipeline capacity to transport natural gas from Pennsylvania, Appalachia and the rest of the United States to the Northeast is already severely constrained, leading to increased natural gas prices during the winter months for consumers.  

LDCs serve a vast array of high-priority customers including private homes, schools, hospitals, nursing homes, and other consumers who need heat during winter peak conditions. Hospitals frequently rely on natural gas combined heat and power generators (CHP) to maintain power during blackouts, including during severe storms. Additionally, in contrast to interrupted electric service, disrupted natural gas service cannot simply be turned back on once pressure is restored on the LDC system. Restoration of natural gas service raises the potential risk of safety incidents, and therefore requires laborious, site-by-site inspections and re-lighting procedures at every home and building. Loss of service due to inadequately planned and arranged natural gas supply sources, such as not having rights to firm pipeline capacity, could have severe and dangerous consequences, even if gas supplies to the LDC were to be restored quickly.