FERC finds for Williams in dispute over Texas-to-Louisiana pipeline
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.
Cathy Landry | Washington Correspondent
Cathy Landry has worked over 20 years as a journalist, including 17 years as an energy reporter with Platts News Service (now S&P Global) in Washington and London.
She has served as a wire-service reporter, general news and sports reporter for local newspapers and a feature writer for association and company publications.
Cathy has deep public policy experience, having worked 15 years in Washington energy circles.
She earned a master’s degree in government from The Johns Hopkins University and studied newspaper journalism and psychology at Syracuse University.