Opinion

Open season activity signals renewed push for interstate gas pipelines

Federal reforms, LNG and power demand growth drive new project momentum, though regional roadblocks persist

1 minute read

Interstate natural gas pipeline development is regaining momentum. So far in 2025, 27 proposed projects have launched open seasons, representing more than 15 billion cubic feet per day (bcfd) of potential capacity. These open seasons are a key step in determining shipper interest and securing commitments for new infrastructure expected to begin service within the next five years.

Federal reforms are changing the landscape

This uptick in activity corresponds with a series of recent federal permitting reforms aimed at streamlining the approval process. The One Big Beautiful Bill Act established fixed timelines for environmental reviews, setting a 180-day limit for environmental assessments and a one-year limit for full environmental impact statements. The Federal Energy Regulatory Commission (FERC) also increased the cost threshold for prior notice filings, while narrowed review scopes under the National Environmental Policy Act (NEPA) are expected to reduce litigation risks.

These changes are helping reduce regulatory uncertainty, encouraging more developers to advance projects.

Regional risks still remain

Despite the improved federal outlook, state-level opposition continues to pose challenges, especially in the Northeast. While a handful of previously stalled projects in the region are being reconsidered, new proposals remain scarce due to persistent legal and political resistance.

Instead, the focus has shifted toward regions with clearer permitting pathways. The South Central and Mountain regions have emerged as hotspots for new activity. So far this year, 11 projects totaling 8 bcfd have launched open seasons in the South Central region, while 9 projects totaling 4 bcfd have done the same in the Mountain region. These areas offer lower opposition and stronger demand drivers, particularly from LNG export growth and power sector expansion.

Looking ahead

Federal policy changes are opening the door for renewed pipeline investment, but regional politics and permitting variability will continue to shape where and how projects move forward. The recent surge in open seasons reflects industry confidence, yet the true test will be whether proposed projects can navigate both market conditions and state-level hurdles in the years ahead.

For additional updates on production trends and infrastructure developments, check out Wood Mackenzie’s Natural Gas Analytics.

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