White House economic adviser Larry Kudlow on April 3 said the Trump administration would soon issue an executive order that would open the door for more natural gas pipelines and exports of LNG. The administration, which is pushing a policy it calls energy dominance, has been considering an order that would push back against states, including New York, that have blocked interstate natural gas pipelines. Kudlow said the executive order would open the way for pipelines and LNG at an event hosted by the Christian Science Monitor news outlet.
New York has blocked pipelines that would take natural gas from Pennsylvania to New England, which means the region sometimes needs imports of LNG. Early last year, a tanker carrying LNG from a project in Russia's Arctic arrived in Boston Harbor to satisfy demand during a cold snap.
It was unclear how the order would overrule the authority of states to rule on pipelines.
Several politicians in New York, including Governor Andrew Cuomo, have said they want energy companies to focus more on renewable power sources and energy efficiency, instead of building more gas and other fossil fuel-fired power plants and infrastructure.
New York State in recent years blocked the construction of several pipelines that would transport fracked natural gas from the Marcellus shale in Pennsylvania to New England, including Williams Cos Inc.'s Constitution and Northeast Supply Enhancement and National Fuel Gas Co's (NFG) Northern Access.
In those cases, New York regulators denied the pipelines on environmental grounds.
Trump has attempted to use an executive order to jumpstart TransCanada Inc.'s long-delayed Keystone XL crude oil pipeline, signing an order just two days after assuming office in 2017. But that did not save the pipeline from getting bogged down in the courts and last week he issued another order seeking to breathe life into the project.
Meanwhile an independent federal agency has taken some steps that could help gas pipelines in New York.
The U.S. Federal Energy Regulatory Commission (FERC) determined last year that New York regulators waived their right to decide on a water quality certification for NFG's Northern Access project because the state waited too long.
FERC this week denied New York's request to rehear that decision.
Williams has made a similar argument about the Constitution pipeline.
In conjunction with the retirement of CFO Don E. Wallette Jr., ConocoPhillips also said William (Bill) L. Bullock Jr. had been named as Wallette’s replacement.
Kayne Anderson will consolidate its two energy private equity teams and one of the managing partners, Chuck Yates, will exit the firm, a source familiar with the matter told Reuters.
We have to bet on pent-up demand. The recovery appears to be ‘V-shaped’ in most markets. We hope to see that in the energy world as well.