American Oil and Gas Reporter - April 2022 - 32

the official says.
Beyond the 15 bcm commitment for
2022, the official indicates the European
Union is committing to 50 bcm of stable
demand for U.S. LNG as part of its goal to
eliminate the 155 bcm worth of Russian
gas the EU consumed in 2021. " That will
involve a lot of commitments by Europe
to build the LNG import infrastructure,
the distributional needs, the storage needs, "
the official observes, adding that much of
that infrastructure may be built in a way to
allow it to be retrofitted for hydrogen uses.
" These are not going to be stranded
assets, " the administration official assures.
As for new U.S. LNG export infrastructure,
administration officials point
to facilities that already have been permitted
or are under construction. Nevertheless,
some analysts express skepticism
that the deal is enough to prompt sufficient
final investment decisions to build export
capacity. Among them are Center for
Strategic and International Studies gas
market analyst Nikos Tsafos, who in published
reports questions whether the 2030
time horizon is adequate. " That's not a
signal for new investment, " he is quoted.
Congressman Garret Graves, R-La.,
notes he and his congressional allies have
urged the Biden administration to allow
U.S. energy to displace Europe's Russian
imports. He describes the deal as another
step in the right direction on the heels of
DOE's recent LNG permit approvals (see
article, page 23). Nevertheless, he indicates,
federal regulators can do a lot more
to clear the way for more export facilities.
" Until they clear the backlogged export
terminal permits and allow new
LNG facility construction, our ability
to replace dirtier Russian gas is constrained, "
Graves warns. " It's good to
see that the pressure put on the Biden
administration is working, but the only
real, long-term solution moving forward
is to permit new LNG terminal construction
and utilize domestic energy
production so we can provide our allies
with reliable and secure energy. "
Gas Demand
As for the agreement's effort to shrink
EU gas demand, Biden and his EU counterpart
say the task force will seek to
accelerate market deployment of clean
energy measures.
It also invokes energy efficiency solutions
such as ramping up demand response
devices, including smart thermostats,
and deploying heat pumps.
" As global leaders in renewable energy,
the United States and the European
Commission will work to expedite planning
and approval for renewable energy
projects and strategic energy cooperation,
including on technologies where we both
excel, such as offshore wind, " a White
House fact sheet says.
It also mentions plans to collaborate
to advance the production and use of
" clean and renewable hydrogen to displace
unabated fossil fuels and cut GHG
emissions, which will include both technology
and supporting infrastructure. "
❒
FERC Pauses Policies To Seek Input
WASHINGTON-Citing a need for
further clarification, the Federal Energy
Regulatory Commission in late March
walked back a pair of policies less than
six weeks after their introduction.
The move, which drew applause from
natural gas industry representatives and
some elected officials, reclassified the
revised pipeline certificate policy statement
and interim greenhouse gas emissions
policy as drafts. The pivot not
only entails more extensive public comment,
press accounts note, but also delays
new GHG standards that FERC's three
Democratic commissioners have claimed
are necessary.
At the commission's March 24 meeting,
FERC Chairman Richard Glick led a vote
to redesignate the policy statements issued
on Feb. 17, which overhauled the criteria
by which FERC approved or denied interstate
natural gas projects, including
specifying that evaluations of a project's
climate impacts should include emissions
from construction and downstream gas
use (AOGR, March 2022, pg. 31).
The American Gas Association deemed
February's policy statements as legally
flimsy expansions of the commission's
statutory jurisdiction that would " actively
discourage the development of pipeline
infrastructure, reduce reliability, raise
consumer costs and create deep uncertainty
that will destabilize the competitive markets. "
According to AGA spokesman Jake
32 THE AMERICAN OIL & GAS REPORTER
Rubin, the March pivot is a welcome reconsideration.
" It is encouraging that
FERC suspended the 2022 policy statements
and has decided to seek comments
from stakeholders, " Rubin is quoted in
published reports. " AGA hopes the commission
will address the concerns we
have raised about the new policies. "
From Policy To Proposal
Now that they have been reclassified
as drafts, the revised pipeline certificate
policy statement and interim GHG emissions
policy will not apply to pending
project applications or filed applications
before the commission issues any final
guidance on the related dockets, FERC
indicates.
" The U.S. Court of Appeals for the
D.C. Circuit has on several occasions,
including as recently as March 11, cast
significant doubt about the approach the
commission has been taking to site natural
gas pipelines and liquified natural gas facilities, "
Glick says. " The policy statements
were intended to provide a more legally
durable framework for the commission
to consider proposed natural gas projects.
" However, in light of concerns that
the policy statements created further confusion
about the commission's approach
to the siting of natural gas projects, the
commission decided it would be helpful
to gather additional comments from all
interested stakeholders, including suggestions
for creating greater certainty,
before implementing the new policy statements, "
Glick relates.
One public figure lauding FERC's
new stance is Senator Joe Manchin, DW.V.,
chairman of the Senate Energy and
Natural Resources Committee, who convened
a hearing on March 3 to review
the policy statements, which he blasted
as short-sighted measures that jeopardize
American energy reliability, security and
independence
When commissioners voted unanimously
in March to revise its February
initiatives, Manchin described it as " a
course-correction from their previous partisanship
and I appreciate their willingness
to address the significant concerns raised
by many members of the Senate Energy
and Natural Resources Committee. "
Manchin went on to hail the commissioners'
votes to approve three midstream
projects. " Energy security for America
and our allies is dependent on FERC's
ability to move much needed energy infrastructure
projects forward, " the senator
affirmed. " To do so it must maintain clear
and predictable policies that strike the
right balance between energy security,
affordability and environmental considerations.
I will continue to seek a bipartisan
path forward to ensure it does. "
FERC says comments on the draft
policy statements are due by April 25,
with reply comments due May 25. ❒
American Oil and Gas Reporter - April 2022

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