Skip to main content

Chairman Glick’s Renomination and What it May Mean for the Gas Industry and MVP

21 Jun 2022

Originally published for customers June 8, 2022.

What’s the issue?

On May 24, President Biden formally nominated Chairman Glick for reappointment to a five-year term on the Commission.

Why does it matter?

Chairman Glick has been leading the charge to adjust FERC’s policies regarding natural gas pipelines to, purportedly, make them more legally defensible. The gas industry is skeptical of his motives and along with many members of the Senate suspect that the actual goal is to limit further pipeline development in an effort to battle climate change by limiting the ability of gas producers to get their gas to market.

What’s our view?

Senate Republicans are most likely to vote as a block against Chairman Glick’s nomination, so his future likely rests with Senator Manchin who controls both the timing and tie-breaking vote on Chairman Glick’s renomination. In the meantime, in addition to reconsidering its pipeline policy, Chairman Glick will need to render a decision by the end of October about the Mountain Valley Pipeline project that could imperil the future of that project. If he is confirmed by the Senate before these two critical decisions are made, he will have no incentive to act in a manner consistent with Senator’s Manchin’s views. So both he and Senator Manchin may be in a staredown between now and the fall as each seeks to maintain maximum leverage.

 


Want the full article? We’ll email it to you.



Recommended reading

Browse recent blogs about a similar topic.

Return on Equity is Very Different for Gas and Liquids Pipelines

Since passage of the Tax Cuts and Jobs Act of 2017 in late December of 2017, the ROEs reported by oil pipelines have risen substantially, whereas the ROEs asserted by gas pipelines in rate cases have not. Yet, oil pipelines have consistently claimed ROEs that are lower than those asserted by the gas pipelines. With the oil index set to rise by almost ten percent this year, the higher ROEs asserted by gas pipelines would help shelter additional revenue increases by the oil pipelines, if such higher returns could be justified.

Read more
FERC Delays Impact Revenues Throughout Gas Pipeline Ecosystem

As we have noted before, FERC approved almost no new gas pipeline projects in 2021 as Chairman Glick hit pause on approvals while he waited for a Democratic majority. The lack of approvals not only impacts the plans of the applicants, but also the revenues of those companies that provide services to the gas pipeline industry.

Read more
Heating up in the Haynesville – Projects Emerge, with Competition for LNG Growth

So far, the primary new greenfield projects, Gulf Run and LA Xpress, to serve growing LNG demand are tracking as planned with construction, with FERC issuing a draft environmental impact statement for Driftwood’s Line 200 and 300 project. From inter and intrastate greenfield and brownfield development in the Marcellus, Utica and Permian, variables delaying projects have consistently reared their ugly head.

Read more