NEW YORK—Illinois regulators on June 4 unanimously rejected a request by environmental groups to delay a decision on Energy Transfer LP’s Dakota Access Pipeline expansion due to the coronavirus pandemic.
Save Our Illinois Land and Sierra Club, which oppose the expansion, told the Illinois Commerce Commission the oil price downturn caused by the pandemic lessened a need for the expansion, and that market data used to justify the project had become outdated.
The ICC still must rule on Energy Transfer’s application to increase capacity on its 570,000 bbl/d crude oil pipeline by adding a series of pumping stations. The project has received approvals from several other U.S. states.
Measures to slow the spread of the coronavirus have cut global fuel demand as much as a third, knocking U.S. crude prices down nearly 40% since the start of the year and spurring widespread production cuts.
The environmental groups asked the commission to delay a final decision on the expansion application and order a hearing to introduce new evidence related to oil market conditions. They also cited a recently ordered federal environmental review of a segment of the pipeline.
Texas-based Energy Transfer countered that the pandemic’s impact on oil demand would be short-lived and not reduce the future need for the pumping facilities, which are expected to enter service in late 2021.
Flows on Energy Transfer’s pipeline, which runs from North Dakota to Illinois, likely will be increased to 750,000 bbl/d under the plan, a company executive told investors last month, lower than an initial proposal of roughly 1 MMbbl/d.
The ruling by the commerce commission, which will ultimately decide whether the project can move ahead in Illinois, upheld an earlier decision by an administrative law judge.
Recommended Reading
Eversource to Sell Sunrise Wind Stake to Ørsted
2024-04-19 - Eversource Energy said it will provide service to Ørsted and remain contracted to lead the onshore construction of Sunrise following the closing of the transaction.
Exclusive: Building Battery Value Chain is "Vital" to Energy Transition
2024-04-18 - Srini Godavarthy, the CEO of Li-Metal, breaks down the importance of scaling up battery production in North America and the traditional process of producing lithium anodes, in this Hart Energy Exclusive interview.
High Interest Rates a Headwind for the Energy Transition
2024-04-18 - Persistent high interest rates will make transitioning to a net zero global economy much harder and more costly, according to Wood Mackenzie Head of Economics Peter Martin.
Scotland Ditches 2030 Climate Target to Cut Emissions by 75%
2024-04-18 - Scotland was constrained by cuts to the capital funding it receives from the British government and an overall weakening of climate ambition by British Prime Minister Rishi Sunak, said Mairi McAllan, the net zero secretary for Scotland's devolved government.
Exclusive: Mitsubishi Power Plans Hydrogen for the Long Haul
2024-04-17 - Mitsubishi Power is looking at a "realistic timeline" as the company scales projects centered around the "versatile molecule," Kai Guo, the vice president of hydrogen infrastructure development for Mitsubishi Power, told Hart Energy's Jordan Blum at CERAWeek by S&P Global.