U.S. gives NFG more time to build PA-NY Northern Access natgas project

National Fuel Gas

30/06/2022 19:48

June 30 (Reuters) - National Fuel Gas Co (NFG)  NFG.N  on
Wednesday got more time from federal regulators to build the
U.S. energy company's proposed Northern Access natural gas
pipeline project in Pennsylvania and New York.
    The U.S. Federal Energy Regulatory Commission (FERC)
approved NFG's January 2022 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
    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.
    In the past, NFG projected the project would cost about $500
million. Officials at the company were not immediately available
for comment.

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