The Federal Energy Regulatory Commission (FERC) rejected Energy Transfer LP’s bid to halt ongoing construction of Williams Cos.’ 1.8-bcfd Louisiana Energy Gateway (LEG) natural gas pipeline.
As part of a long-running legal dispute, Energy Transfer asked FERC to treat the pipe as an interstate pipeline and take over regulatory responsibility.
Williams countered that the pipeline is an intrastate line outside FERC’s jurisdiction, a position affirmed by a favorable ruling from the 30th Judicial Court of Vernon Parish, La. That court also found in Williams’ favor in a right-of-way dispute involving LEG’s crossing of an existing Energy Transfer pipeline (OGJ Online, Aug. 12, 2024).
“We find that the LEG System will not be subject to the Commission’s jurisdiction … because the whole system serves a gathering function,” FERC said in its Sept. 27 ruling, rejecting Energy Transfer’s position.
The Texas-to-Louisiana LEG would bring gas production from the Haynesville shale, Tuscaloosa Marine, Austin Chalk, and surrounding production regions to downstream transmission systems and Gulf Coast markets using two pipeline segments. William has several fully negotiated gas gathering agreements for capacity on the LEG system and is negotiating further agreements.
“With this ruling, Williams continues to prevail against Energy Transfer’s efforts to hinder the development of our project,” a Williams spokesman said, adding that Williams has invested “significant resources in Louisiana to support growing demand for low-cost, reliable, and clean natural gas and LNG.”
The company is eyeing a second-quarter LEG start date. It had originally planned to start service in late 2024.
Energy Transfer did not respond to a request for comment.
