Illinois Rejects Bid to Delay Decision on Dakota Access Expansion
NEW YORK (Reuters) - Illinois regulators on Thursday 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caused by the pandemic lessened a need for the expansion, and that market data used to justify the project had become outdated.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 barrel-per-day (bpd) crude oil pipeline by adding a series of pumping stations. The project has received approvals from several other U.S. states.
Global response to the coronavirus has cut 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 bpd under the plan, a company executive told investors last month, lower than an initial proposal of roughly 1 million bpd.
Thursday’s 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.
Related News
Related News
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- ONEOK Agrees to Sell Interstate Gas Pipelines to DT Midstream for $1.2 Billion
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Texas Oil Company Challenges $250 Million Insurance Collateral Demand for Pipeline, Offshore Operations
Comments