U.S. gives NFG more time to build Northern Access natgas pipeline (updated)

National Fuel Gas

30/06/2022 21:00

(Adds comment from NFG)
    June 30 (Reuters) - U.S. regulators have given National Fuel
Gas Co (NFG)  NFG.N   more time to build its proposed Northern
Access natural gas pipeline project in Pennsylvania and New
York.
    The U.S. Federal Energy Regulatory Commission (FERC) on
Wednesday approved NFG's January request for a 35-month
extension to build the project by December 2024.
    Northern Access is one of several fossil fuel projects held
up by regulators in New York over the past several years. Others
include Williams Cos Inc's  WMB.N  Northeast Supply Enhancement
and Constitution gas pipelines.  urn:newsml:reuters.com:*:nL2N2AO11B  urn:newsml:reuters.com:*:nL1N2CX2R9
    "Due to the passage of time, including extensive litigation
delays, we are in the process of evaluating our next steps," NFG
spokesperson Karen Merkel said, noting she could not comment on
the current expected cost of the project.
    When first proposed, NFG expected the project to cost about
$500 million.
    FERC approved the project in February 2017 and said NFG had
to put it in service by February 2019.
    NFG, however, did not build the project because it could not
get a water quality certificate from the New York State
Department of Environmental Conservation (NYSDEC).
    In November 2018, NFG asked FERC for more time to complete
construction due to the delay in getting the water quality
certificate. In January 2019, FERC gave NFG until February 2022
to finish the project.
    In October 2020, NFG asked FERC for another extension until
December 2024 to complete the project, but FERC dismissed that
request as premature.
    NFG made the current request for more time to finish the
project in January 2022 after a court determined the NYSDEC
waived its water quality certification authority by waiting too
long to act on the company's request.
    Northern Access, which includes a 99-mile (159-km) pipeline,
is designed to deliver about 0.49 billion cubic feet per day of
gas from the Marcellus shale in Pennsylvania to New York.

 (Reporting by Scott DiSavino; Editing by Richard Chang and
Marguerita Choy)
 ((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters
Messaging: scott.disavino.thomsonreuters.com@reuters.net))