NPC Calls for Permitting Reform, Gas-Electric Coordination to Protect Grid Reliability
The National Petroleum Council is urging federal permitting reform and stronger gas-electric coordination, warning that misaligned infrastructure and markets could threaten U.S. grid reliability as energy demand rises.
(P&GJ) — National Petroleum Council has released two reports urging federal action to strengthen U.S. electricity delivery and energy reliability, with recommendations focused on infrastructure permitting reform and improved coordination between natural gas and electric systems.
The reports are part of the NPC’s Future Energy Systems series, requested by Chris Wright, and respond to what the council described as unprecedented growth in U.S. energy demand. The findings were announced by NPC Chair Alan Armstrong during a briefing with the Department of Energy.
“The NPC is proud to deliver timely, consensus-based advice to the Department of Energy on two of the most critical challenges facing our energy future,” Armstrong said. “These reports reflect months of rigorous analysis by an exceptional group of professionals who share a commitment to ensuring that America's energy systems remain reliable, affordable, and secure.”
Energy Secretary Wright said the recommendations highlight how natural gas infrastructure and policy reforms can support affordability, reliability and economic growth.
“America has extraordinary energy advantages. With smart infrastructure and smart policies, we can translate those strengths into opportunities for the American people,” Wright said. “With America's natural gas abundance and infrastructure potential, we can drive down costs, reshore manufacturing, and grow opportunity.”
One report, Reliable Energy: Delivering on the Promise of Gas Electric Coordination, concludes that growing interdependence between gas and electric systems has created operational and market misalignments that could threaten reliability if left unaddressed. The study recommends changes to market incentives, operating practices and accountability frameworks to reduce the risk of disruptions cascading across the grid.
“Gas and electricity markets were designed for different purposes,” said James Y. Kerr II, chair of NPC’s Committee on Gas-Electric Coordination and chairman, president and CEO of Southern Company Gas. “Aligning them is essential to keep the lights on, support a variety of energy sources, and ensure consumers have access to affordable, reliable energy.”
Toby Rice, president and CEO of EQT Corporation and co-chair of the committee, said natural gas remains central to grid reliability. “Natural gas is the fuel of the future, powering our economy with affordable energy. This study lays out real, actionable steps to make sure gas and electricity work hand in hand,” Rice said.
A second report, Bottleneck to Breakthrough: A Permitting Blueprint to Build, focuses on oil and natural gas infrastructure permitting. The study calls for streamlined federal approvals, stronger interagency coordination and predictable, time-bound permitting processes, updating the NPC’s 2019 Dynamic Delivery analysis.
“Fit-for-purpose permitting reform is critical to meeting future energy needs,” said François Poirier, president and CEO of TC Energy and chair of the NPC Infrastructure Permitting Committee. “A modern, transparent process will help accelerate investment, enhance reliability, and strengthen North America's energy leadership.”
The NPC said additional reports in the Future Energy Systems series will address infrastructure security, technology innovation and U.S. energy trade competitiveness.