Energy Transfer LP and Momentum Midstream LLC have settled a dispute over pipeline crossings in Louisiana, allowing Momentum to proceed with a gathering project to supply Gulf Coast LNG exports.
Momentum’s $1.6 billion New Generation Gas Gathering LLC (NG3) pipeline and carbon capture project has been on hold since Energy Transfer filed a lawsuit to block the project from crossing its Gulf Run Pipeline.
NG3 and Energy Transfer settled earlier this month, according to a filing with the 42nd Judicial District Court, Desoto Parish, LA. The companies asked the court to dismiss claims with all parties responsible for their costs.
Momentum stated that the NG3 project was proceeding forward with the dispute resolved.
NG3, which would have an initial capacity of 1.7 Bcf/d*, had spent $900 million on land rights and pipe and other materials, a Momentum attorney said earlier this year.
The NG3 settlement comes as Energy Transfer has faced setbacks in court with two other rivals, DT Midstream Inc. (DTM) and Williams. The legal proceedings centered around similar crossing disputes in Louisiana for pipelines that would ship gas from the Haynesville Shale to liquefied natural gas export terminals.
DTM switched to an alternate crossing route for its Louisiana Energy Access Project (LEAP), but has continued the legal fight to recoup costs. In April, a Louisiana appeals court ruled in DTM’s favor.
A day before the NG3 settlement was made public, the 36th Judicial District Court in Beauregard Parish, LA, ruled in favor of Williams’ Louisiana Energy Gateway (LEG) project and enjoined Energy Transfer from interfering. Energy Transfer filed nine lawsuits against LEG in Louisiana involving crossings, according to Williams.
Williams expects to meet its adjusted timeline to finish LEG in the second half of 2025, according to Chad Zamarin, executive vice president of Corporate Strategic Development. He told NGI that the appellate court ruling in favor of DTM was “an extremely strong indication that we’ll be successful through the court proceedings.”
Williams, like DTM and Momentum, has accused Energy Transfer of attempting to stall projects in an effort to stifle competition. “It’s hard enough to build infrastructure in the United States, and to have one of our own pipeline midstream companies disrupting and making it harder is really unfortunate,” Zamarin said.
Energy Transfer has bristled at anti-competitive accusations and defended its rights of way to protect the operations of its pipelines. Pipeline crossings are common, and Williams and others have crossed Energy Transfer pipelines many times in the last few years, according to Energy Transfer spokesperson Vicki Granado.
However, Williams did not provide enough information for Energy Transfer to evaluate the large number of crossings sought. “Our top priority is and will always remain the safety of our assets. We will continue to push back on these requests until we are able to review all pertinent information to ensure the safety of our pipelines and the landowners through which we pass,” Granado said.
*In this original story, the size of the New Generation Gas Gathering LLC project was misstated. NGI regrets the error.
