Constitution Pipeline Back on Table as Williams Re-Starts Push

Williams Cos. is giving the Constitution Pipeline and Northeast Supply Enhancement projects another try after stepping back during a hostile political environment in 2020, a company spokesperson confirmed May 29.

The Wall Street Journal published a report on May 28 from anonymous sources claiming Williams would revive the projects. Williams told Hart Energy on May 29 that it had started to move ahead.

“Williams has submitted a petition to the Federal Energy Regulatory Commission (FERC) for reinstatement of the certificate of public convenience and necessity for the Northeast Supply Enhancement (NESE) Project,” a spokesperson said via email.

Williams has begun working on permitting the projects with the New Jersey Department of Environmental Protection, the Pennsylvania Department of Environmental Protection and the New York State Department of Environmental Conservation, the company told Hart Energy.

The company “will be promptly filing applications with those agencies to secure the necessary permits for advancing both the NESE and Constitution Pipeline projects,” the spokesperson said.

Williams made the move following a May 20 announcement by the Trump administration that it had cancelled a stop-work order on Equinor’s $5 billion Empire Wind project off the coast of New York.

In exchange, Kathy Hochul, the governor of New York, agreed to be open to the construction of new natural gas infrastructure.

At the time, analysts considered the Constitution Pipeline the most likely candidate for construction. President Trump has stated on several occasions since his election that the pipeline project should be built.

However, Hochul has said little about approving the project, other than she plans to consider infrastructure construction proposals as they are filed with the state. There is likely plenty of opposition left within the New York state government, said Tom Sharp, political intelligence analyst for Arbo. 

Williams CEO Alan Armstrong said in March that the company would be happy to build the projects, provided the political climate changed.

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The Northeast U.S. has some of the highest power utility costs in the nation and is the only region in the Lower 48 that relies on the importation of LNG for its natural gas supply, despite its proximity to some of the most productive Marcellus and Utica gas shales.

However, pipeline projects have faced fierce opposition from environmental groups in the region, both on-site and in the courtroom. Politicians in New York and Massachusetts have generally sided with opposition groups. While in office, New York Governor Andrew Cuomo rejected the Constitution Pipeline’s water quality permits as part of Earth Day celebrations in 2016.

Since the Trump administration announced the wind energy for gas infrastructure deal, analysts have been skeptical that the Constitution Pipeline would go forward.

Zach Krause, an analyst for East Daley Analytics, said in a report printed on April 30 that many of the original partners and customers of the project are under new management, and that much of the infrastructure that would have interconnected with the Constitution are now operating at capacity.

Williams emphasized that both the Constitution and NESE projects were essential.

“The NESE and Constitution projects are essential to address persistent natural gas supply constraints in the Northeast, constraints that have led to higher energy costs for consumers and increased reliance on higher-emission fuels like fuel oil,” the statement said.

The Constitution Pipeline was initially planned as a 124-mile line connecting Appalachian shale to New York and New England. In its May 29 statement, Williams said the project would add 1,300 construction jobs and 275 permanent jobs to the region, while the NESE would add more than 3,000 construction jobs in the New Jersey area. The project would enlarge its existing supply lines around New York City.