FERC Rescinds Rule on Natural Gas Project Delays Effective Nov. 10, 2025

The U.S. Federal Energy Regulatory Commission (FERC) announced the rescission of a rule that had previously prohibited work on natural gas projects while the agency reviewed potential legal or regulatory challenges. This decision, effective November 10, 2025, is expected to expedite the development of new energy infrastructure by allowing companies to move forward with construction and operational activities without prior clearance from FERC for contested matters.

The rule, which was put in place to streamline oversight and ensure compliance with environmental and legal standards, had led to delays in several key pipeline and transmission projects across the country. Under the rescinded regulation, projects could not proceed with certain construction or operational components until FERC completed its evaluation of any filed challenges. The removal of this restriction will now allow firms to bypass such procedural holds and continue development under standard permitting timelines.

The change is consistent with a broader shift in regulatory priorities, particularly in infrastructure-heavy sectors like energy. FERC’s updated policy aligns with recent state-level actions that have also moved to facilitate the expansion of natural gas capacity. For example, New York State recently approved permits for the Northeast Supply Enhancement Project (NESE), a $1 billion pipeline expansion expected to increase gas supply into the region by 13 percent.

While environmental groups have criticized similar developments, the FERC decision is framed as a necessary step to enhance energy security and meet rising demand. Natural gas is projected to remain a critical component of the U.S. energy mix for the foreseeable future, especially as it supports power generation, industrial processes, and emerging export initiatives such as liquefied natural gas (LNG). With the rescission of the previous rule, developers are expected to accelerate project timelines, reducing delays that had previously hampered capital deployment and construction schedules.

The timing of the rescission also coincides with growing interest in infrastructure expansion across the U.S. and Canada, where companies like TC Energy have reported strong performance in natural gas pipeline operations. The firm highlighted a 10 percent increase in comparable EBITDA for Q3 2025, driven largely by its U.S. and Canadian pipeline systems. These trends suggest that a more permissive regulatory environment will likely encourage further investment in the sector.

Critically, the new FERC policy does not eliminate the need for rigorous environmental or legal review. Rather, it shifts the burden of compliance to earlier stages of project planning and development. Developers will still be required to meet all existing regulatory and environmental standards, but the rescission removes a procedural bottleneck that had previously required work to halt during FERC review periods.

With the effective date already in the current month of November 2025, the change is expected to have an immediate impact on the permitting landscape for new pipeline projects. Developers who had previously paused activities due to pending challenges will now be able to resume work, potentially accelerating delivery timelines and reducing project costs.

The shift in FERC policy is likely to be closely watched by stakeholders across the energy sector, including regulators, investors, and advocacy groups. While it is expected to support faster deployment of infrastructure, it also raises questions about how environmental and legal challenges will be managed under the new framework. Developers will need to ensure that pre-review compliance is robust to avoid later delays or legal setbacks.

In summary, FERC’s decision marks a significant regulatory development for the natural gas industry, reducing a key barrier to project development and potentially boosting the pace of infrastructure expansion. As companies move forward with new initiatives, the focus will remain on balancing growth with environmental and legal obligations in an evolving market landscape.