(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor – FERC’s May 2026 proposal to expandthe blanket certificate program represents the most significant update to interstate natural gas permitting since 2006 and is broadly aligned with long-standing industry priorities to streamline approvals for routine infrastructure. Pipeline operators and trade groups have argued that existing cost limits no longer reflect current construction costs and that many expansions and upgrades are routine and have limited-impact, and therefore do not require full Section 7 review. The proposal would raise eligibility thresholds to roughly $30 million for automatic authorization and $86 million for prior-notice projects, materially expanding the scope of work that can proceed outside case-specific proceedings. While FERC has not quantified timing improvements, the practical effect is to shift eligible projects away from a multi-year certificate process and into a streamlined path requiring little or no advance approval. Impacts on large-diameter greenfield pipelines remain limited. Phillips 66 announced it is moving forward with the Zeus Gas Plant and a third Coastal Bend Fractionator, two projects that will advance its integrated wellhead-to-market strategy, thereby expanding gas processing capacity in the Permian and NGL fractionation capabilities on the Gulf Coast. The Zeus project will be a 300 MMcf/d gas processing facility in the Permian and will include the new Midland Express (MEX) Pipeline, an approximately 45-mile, 20-inch line integrating Phillips 66’s Permian Basin gathering systems. MEX is expected to come online in 2028.
Preston Pipe Report – May 2026
Pipe Exchange
16060 Dillard Drive, Suite 150, Jersey Village, TX 77040
- Phone: 713.934.9480
- Fax: 713.934.9490
- Email: sales@pipexch.com