All Eyes on FERC: Connected Actions and CP2's Regulatory Roadmap
CP2's Triple Challenge: New Arguments in FERC Rehearing Request
The CP2 LNG export project has faced complex regulatory hurdles, including a halted construction order, ongoing DOE reviews, and potential dual appeals at the DC Circuit. As one of the largest proposed LNG facilities in the U.S., CP2 holds strategic importance, and stakeholders must understand how evolving air quality methodologies, legal precedents, and regulatory uncertainty impact project timelines — as well as broader implications for the LNG industry amid potential shifts in federal policy and leadership.
'Tis the Season for Connected Actions: Two FERC Projects Under the Same Corporate Tree
What’s the issue?
The DC Circuit's recent Rio Grande decision signals an increasingly expansive view of when projects must be analyzed together as "connected actions" under NEPA. As Kinder Morgan advances two pipeline projects through FERC's pre-filing process, the Commission's choice to analyze them separately or together could create litigation risk at the DC Circuit.
Why does it matter?
For project developers and traders, whether FERC analyzes these projects separately or together could significantly impact development timelines, permitting risk and, ultimately, market dynamics. Recent precedent increasingly favors comprehensive environmental review, making early assessment of "connected actions" crucial for project planning.
What’s our view?
While the projects' distinct operational components support independent analysis, FERC may consider analyzing them together given their complementary nature, shared corporate ownership, and the DC Circuit's expanding view on connected actions.