Federal regulators shot down a proposal by Kinder Morgan Inc. that the company said would bring transparency and liquidity to the nascent certified natural gas market.


FERC late last month denied Kinder’s plan to implement a certified gas pooling service along its Tennessee Gas Pipeline (TGP). The proposal, revised and resubmitted to the Federal Energy Regulatory Commission in March following discussions with interested parties, sought to offer the pooling service at locations along the 11,760-mile conduit. Ultimately, the certified gas would serve end-users, utilities, power plants and liquefied natural gas facilities connected to the pipeline.

In denying the proposal, all five FERC commissioners took issue with including the criteria used to certify the gas in the pooling...