FERC backs Energy Transfer in midstream dispute with bankrupt Chesapeake

摘要

The US Federal Energy Regulatory Commission (FERC) has said it has the power to overrule decisions made by bankruptcy courts when it comes to scrapping or amending natural gas transportation agreements, after weighing in on a dispute between Chesapeake Energy and midstream player Energy Transfer. FERC’s intervention could have major repercussions for the gas industry as low commodity prices force more US shale producers into bankruptcy. In a filing late last week, FERC sided with pipeline company Energy Transfer in its dispute with bankrupt shale producer Chesapeake Energy, which in June asked a bankruptcy court to cancel its multi-million-dollar contract with the midstream firm’s subsidiary ETC Tiger.