Gas Pipeline Constraints

Building a new natural gas pipeline in the United States takes roughly 7-12 years. Building the gas power plant it feeds takes 2-3 years. The pipeline, not the plant, is the bottleneck. And the bottleneck is not engineering. It is permitting.

New interstate pipelines require FERC certification, environmental review under NEPA, and often face state-level challenges and landowner lawsuits. The Mountain Valley Pipeline, approved by FERC in 2017, required a literal act of Congress in 2023 to begin operation. This timeline is not unusual. Every major pipeline project in the Northeast, Appalachia, and the Southeast has faced similar delays.

Trace the consequences. Insufficient pipeline capacity strands gas production (Appalachian gas sells at a discount because it cannot reach coastal markets). Power plants built near demand may lack firm gas supply during winter peaks, when heating demand competes with power generation for pipeline capacity.

Why does pipeline capacity matter for electricity reliability?

The gas-electric interdependence. Gas plants now generate 40-45% of US electricity. Many rely on interruptible gas contracts (cheaper, but the pipeline can cut supply during high-demand periods). During Winter Storm Uri (2021) and Winter Storm Elliott (2022), gas plants lost fuel access because pipelines prioritized heating customers. Pipeline constraints are electricity reliability constraints.

The inability to build pipelines limits where gas plants can operate reliably, where production can reach markets, and how quickly the electricity system can respond to shifting demand patterns.

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