U.S. Regulators Nix Pipeline’s ‘Climate-Friendly’ Gas Plan (1)

U.S. energy regulators decided to stay out of endorsing a definition of climate-friendly natural gas, rejecting a Kinder Morgan subsidiary’s first-of-its-kind proposal to ship and trade responsibly sourced gas along its 11,760-mile conduit.

The Federal Energy Regulatory Commission on Friday rejected the proposal by Tennessee Gas Pipeline Co., a unit of the Houston energy firm, to carry out its own certification process. The ruling means the gas industry will likely have more work to do before pitching the commission on the idea again.

The commission order noted the lack of industry or government-established standards that could guide regulators as they ...