FERC Proposes Sweeping Reforms to Natural Gas Blanket Permitting Program
According to Oklahoma Energy Today, the Federal Energy Regulatory Commission has unveiled what it calls “sweeping” reforms to its blanket permitting process for natural gas infrastructure, proposing to significantly expand the types and sizes of projects that can proceed without case-by-case Commission approval.
What’s Changing Under the NOPR
The Notice of Proposed Rulemaking would permanently overhaul FERC’s blanket authorization regulations for interstate natural gas pipelines. The proposed changes broaden project eligibility under the blanket program and raise cost limits, allowing more construction activity to proceed without individual authorization. FERC said the reforms are designed to streamline permitting and accelerate infrastructure development.
The NOPR follows a Notice of Inquiry issued in June 2025, which sought public comment on potential modifications to the blanket certificate program. Alongside the proposed rulemaking, FERC extended the deadline for projects operating under temporary regulatory waivers on cost limits by one year, moving the cutoff from May 31, 2027, to May 31, 2028. The Commission said this extension provides regulatory certainty while permanent policy is finalized.
FERC also announced in November 2025 that it is exploring blanket authorization procedures for maintenance, repairs, and upgrades at liquefied natural gas plants and hydroelectric facilities.
What It Means for Subcontractors
- Faster project starts: Broader blanket authorization means pipeline and midstream operators may be able to break ground on more projects without waiting for case-specific FERC approval, potentially compressing pre-construction timelines.
- More work in the pipeline: Raising cost limits under the blanket program unlocks larger projects for streamlined approval, which could translate into more contract opportunities for welding, civil, and equipment crews.
- Extended cost waiver window: The deadline extension to May 31, 2028, gives operators and their subcontractors more runway on projects currently relying on temporary cost-limit waivers, reducing the risk of work stoppages tied to regulatory uncertainty.
- LNG and hydro opportunities ahead: FERC’s separate review of blanket procedures for LNG plants and hydroelectric facilities signals potential future streamlining in those sectors, worth monitoring for subcontractors active in maintenance and upgrade work.
