US gives NFG more time to build Northern Access natural gas pipeline

June 30 (Reuters) – U.S. regulators have given National Fuel Gas Co (NFG) (NFG.N) more time to build its Northern Access 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 many fossil fuel projects withheld by New York regulators in recent years. Others include Williams Cos Inc’s (WMB.N) Northeast Supply Enhancement and Constitution pipelines.

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“Due to the passage of time, including significant litigation delays, we are in the process of evaluating our next steps,” NFG spokeswoman Karen Merkel said, noting she could not comment on the report. current projected cost of the project.

When first proposed, NFG expected the project to cost around $500 million.

FERC approved the project in February 2017 and said NFG should have it in service by February 2019.

NFG, however, did not construct the project because it was unable to obtain 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 obtaining the water quality certificate. In January 2019, FERC gave NFG until February 2022 to complete the project.

In October 2020, NFG asked FERC for another extension to December 2024 to complete the project, but FERC denied that request as premature.

NFG requested more time to complete the project in January 2022 after a court determined that NYSDEC waived its water quality certification authority by waiting too long to act on the request of the company.

Northern Access, which includes a 99-mile (159 km) pipeline, is designed to deliver about 0.49 billion cubic feet per day of shale gas from Marcellus in Pennsylvania to New York.

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Reporting by Scott DiSavino; Editing by Richard Chang and Marguerita Choy

Our standards: The Thomson Reuters Trust Principles.

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