Pipeline, LNG and Hydrogen Projects Advance Across Global Markets
Court Upholds FERC Approval of GTN Xpress Pipeline Expansion in Pacific Northwest
The U.S. Court of Appeals for the Fifth Circuit has upheld the Federal Energy Regulatory Commission’s (FERC’s) approach to approving the Gas Transmission Northwest (GTN) Xpress pipeline expansion project, rejecting challenges related to cost allocation and environmental review.
The case, Gas Transmission NW LLC vs. FERC, centers on GTN’s plan to increase the capacity of its pipeline system delivering natural gas from Western Canada into the U.S. Pacific Northwest and California. The GTN Xpress project includes replacing aging compressor units and expanding system throughput to meet growing demand in the region.
A key issue in the dispute involved how nearly $250 MM in compressor replacement costs should be allocated. GTN sought to spread those costs across all pipeline shippers under a “rolled-in” rate structure, while FERC declined to make a cost allocation decision during the certificate proceeding.
Instead, the agency determined that the issue should be addressed in a future rate case under Section 4 of the Natural Gas Act. The Fifth Circuit agreed with FERC’s approach, finding the agency’s decision to defer the cost allocation determination reasonable and consistent with established regulatory practice.
Environmental and state petitioners also argued that FERC violated the National Environmental Policy Act (NEPA) by treating compressor replacements and capacity expansion as separate actions rather than a single project requiring a broader environmental review.
The court rejected those arguments, concluding that FERC reasonably evaluated the expansion and reliability upgrades separately. The ruling also affirmed FERC’s reliance on precedent agreements with expansion shippers as sufficient evidence of market demand to support the project.
The decision reinforces long-standing regulatory practice allowing pipeline operators to structure reliability upgrades separately from capacity expansions while addressing detailed rate issues later in the regulatory process.
Texas LNG Signs EPC Contract with Kiewit Ahead of FID
Texas LNG Brownsville LLC has executed a lump-sum turnkey engineering, procurement and construction (EPC) contract with Kiewit for its proposed liquified natural gas (LNG) export terminal at the Port of Brownsville, Texas (U.S.). The agreement marks one of the final steps before the project reaches a final investment decision (FID), according to project developer Glenfarne Group.
Under the contract, Kiewit Energy Group Inc. will handle engineering, procurement, module fabrication, construction and commissioning of the full Texas LNG facility, delivering a completed and operational terminal.
The Texas LNG export facility is planned for the Port of Brownsville in South Texas and is being developed by Glenfarne Group, a global developer and operator of energy infrastructure assets. The company is developing LNG projects across North America with a combined permitted capacity of 32.8 million metric tons per year (metric MMtpy).
Southern Star Advances Kansas Gas Pipeline Project as FERC Opens Review
FERC has begun the environmental review process for Southern Star Central Gas Pipeline’s proposed Viola Project in Sumner County, Kansas, which would include a new pipeline and compressor station designed to support a planned gas-fired power plant.
According to the notice, FERC staff will prepare an environmental document evaluating the potential impacts of the project before deciding whether it meets the requirements for a Certificate of Public Convenience and Necessity.
Southern Star proposes constructing approximately 19.33 mi of a new 16-in.-diameter pipeline, known as Line UA, which would connect to the company’s existing 20-in. Line U system. The project also includes a new compressor facility and related infrastructure.
The planned Wellington Compressor Station would include three compressor units totaling 12,375 horsepower (hp), along with supporting equipment and a new mainline valve. A new meter station would connect the pipeline to the 710-megawatt (MW) Viola combined-cycle power plant, which is being developed by Evergy Kansas Central.
Once completed, the pipeline and compressor facilities would be capable of transporting up to 116,296 dekatherms per day of natural gas to the power generation facility. Construction of the project would disturb approximately 266 acres of land, with about 164 acres remaining in use for long-term operation after restoration activities are completed.
Vopak Delays FID on South Africa’s First LNG Import Terminal to 2028
Dutch tank storage and terminal operator Vopak has pushed back an FID on South Africa's first LNG terminal to 2028, according to a senior executive. The company had planned to approve the project earlier this year, but a September court order halted power utility Eskom's plans to develop a 3,000-MW gas-powered plant at Richards Bay, slowing progress.
Vopak now expects to be ready to make the final decision in 1Q 2028. The two-phase project is estimated to cost around $1 B. The Zululand Energy terminal, situated along South Africa's east coast, was expected to initially import 2 metric MMtpy of LNG by 2027 before ramping up to 5 metric MMtpy.
Italy’s Snam Plans $232-MM Hydrogen Backbone Using Repurposed Gas Pipelines
Italy’s gas infrastructure operator Snam plans to invest €200 MM ($232 MM) to begin development of a national hydrogen (H₂) backbone as part of its 2026–2030 strategic plan. The project would create an end-to-end H₂ transport system by repurposing a large portion of the company’s existing natural gas pipeline network.
Snam said the H₂ backbone would leverage its current infrastructure by converting about 60% of its existing gas transport pipelines to carry H₂, allowing large-scale transport while limiting the need for new pipeline construction.
The project is included on the European Union’s (EU’s) Projects of Common Interest (PCI) list and has already secured €24 MM ($28 MM) in support from the EU’s Connecting Europe Facility to fund part of the early engineering work.
Snam expects the H₂ pipeline network to play a key role in transporting H₂ between production hubs, industrial centers and storage sites as Europe moves to decarbonize heavy industry and energy-intensive sectors. An FID on the H₂ backbone is expected by early 2030, subject to regulatory support and sufficient commercial demand, the company said.
The initiative is part of Snam’s broader €14-B ($16.2-B) strategic investment plan through 2030 focused on expanding gas infrastructure, developing carbon capture networks and advancing H₂ transport systems.
Local Gas Begins Flowing Through Morgantown Connector Pipeline in West Virginia
Northeast Natural Energy (NNE) has begun supplying natural gas into Hope Gas’s newly commissioned Morgantown Connector pipeline in West Virginia (U.S.), marking a new delivery route intended to strengthen supply reliability and support regional energy demand.
The Morgantown Connector pipeline links local gas production with Hope Gas’s distribution network, providing additional supply options for the Morgantown area and surrounding communities. Gas is being delivered through NNE’s Northeast Midstream system in Marion County. NNE worked with Hope Gas and Apex Pipeline on the project, which is intended to expand natural gas service in the region and provide additional supply reliability.
Cadent Opens Consultation on 93-mi Humber–Nottinghamshire Hydrogen Pipeline
Cadent has launched the first stage of public consultation for its proposed 150-km (93-mi) H₂East H₂ pipeline linking the Humber industrial region with Nottinghamshire in eastern England. The consultation opened March 3, 2026, and will run through April 14, 2026. Feedback is being sought on the proposed underground pipeline route and potential locations for H₂ above-ground installations (HAGIs), which would be used to control and operate the system.
The H₂East pipeline would transport H₂ from the Humber region through Lincolnshire into Nottinghamshire, supplying industrial users across the corridor. The project forms part of the broader east coast H₂ initiative, a collaboration between Cadent, National Gas and Northern Gas Networks aimed at connecting H₂ production and storage with industrial demand.
The proposed line would be constructed underground, with above-ground installations placed at selected points along the route. If approved, the pipeline would support industrial users seeking to switch from natural gas to H₂ as part of the UK’s broader decarbonization strategy.