New York clears key hurdle for Williams' Northeast Supply Enhancement gas pipeline

Williams has secured a water quality certification for the Northeast Supply Enhancement Project from New York, clearing an important regulatory hurdle for the 400,000 Dth/day natural gas pipeline project, intended to serve downstate customers.

The DEC announced on Nov. 7 that it had approved required permits for the project in the state, including the Clean Water Act Section 401 Water Quality Certification.

The key state signoff follows the US Federal Energy Regulatory Commission's reinstatement of the project's main federal authorization under the Natural Gas Act in late August.

Williams previously let its original 2019 FERC certificate lapse after prior denials of the water permits by New York and New Jersey.

Key permits for the project were also issued by New Jersey on Nov. 7, including a water quality certification, wetlands permits, flood permits and waterfront development permits.

The pipeline expansion involves approximately 37 miles of pipeline extending from Pennsylvania through New Jersey and New York, as well as a new compression station located in Somerset County, New Jersey. It would supply National Grid local distribution utilities serving New York City and Long Island.

"NYSDEC subjects all permit applications to a rigorous review process based on current available information, and following a comprehensive evaluation of this application, NYSDEC has determined that the project can comply with applicable water quality standards upon appropriate conditions," the New York regulator said in a letter to Williams' Transcontinental Gas Pipe Line.

The New York State Public Service Commission in September found the project is needed and that it is appropriate for National Grid to contract for its capacity based on reliability and economic benefits. In its Sept. 18 finding, the PSC cited long-running pipeline constraints in the region and a narrowly avoided catastrophe during a winter storm in December 2022.

In approving the project on Nov. 7, NYSDEC said it is imposing conditions, including oversight through independent third-party compliance monitors. It spelled out other steps to mitigate impacts, such as construction time-of-year windows to avoid sedimentation disturbance to protect the life cycles of clams and support aquatic species.

Furthermore, it required the developer to implement a dredge management plan to limit the suspension of contaminants.

The NYSDEC noted that the project involves about 23.5 miles of new underwater pipeline, and about 17.4 miles would be installed in New York State waters. The permit requires the pipe to be installed at a minimum depth of about 4 feet below the sea floor to help minimize suspended sediment.

The regulator also required about $23.5 million in mitigation, it said. Alongside the water quality certification and fill permit, NYSDEC issued an industrial discharge permit.

Williams CEO Chad Zamarin said the company is "proud to move NESE forward and do our part in providing New Yorkers access to clean, reliable and affordable natural gas." He added that there is "increasing recognition that energy affordability directly impacts everyday affordability."

The company noted that it is also continuing to advance its previously shelved Constitution Pipeline project. Williams said it has withdrawn its current water permit application for Constitution with NYSDEC, but is preparing to follow up with additional filings to ensure regulatory approval. The project was originally proposed to run 125 miles and transport 650 MMcf/d of gas from Pennsylvania to New York. Like NESE, Constitution saw its New York water quality certification denied in prior years.

Gas prices in the Northeast are prone to spikes during periods of high demand due to limited pipeline capacity.

The cash gas price for Transco Zone 6 NY averaged $18.96/MMBtu during January 2025, compared with the average Henry Hub price of just $4.64/MMBtu, according to data from Platts, part of S&P Global Energy.

Williams has targeted an in-service date in the fourth quarter of 2027 ahead of the 2027 winter heating season.

National Grid NY President Sally Librera welcomed the New York approval, saying the project will bolster critical energy reliability across New York City and Long Island.

Independent Power Producers of New York said it supports NYSDEC's announcement.

"Pipeline projects, such as NESE, show the recognition that natural gas is a crucial resource to maintaining the reliability and safety of New York's electric grid during the State's energy transition, while establishing an 'all-of-the-above' approach, as indicated by the Draft State Energy Plan," the group said in a statement.

The project continues to face legal challenges from environmental groups.

A coalition of environmental groups, homeowners and nonprofits filed suit Oct. 30 in the US Court of Appeals for the District of Columbia Circuit, challenging FERC's Aug. 28 reissuance of the authorization for the project.

Environmental groups have also sought a rehearing of the New York PSC finding that the project is needed.

Mark Izeman, NRDC senior attorney for environmental health, called New York's Nov. 7 approval of the water permit a "complete reversal" of the state's two previous determinations to reject the project over threats to the state's water resources.

"The pipeline proposal is exactly the same, and state and federal law is the same, so there is no legal or scientific basis for taking a 180-degree turn from the state's past denials," Izeman said in a statement. If built, he said the project would tear up 23 miles of the New York-New Jersey Harbor floor, destroy marine habitats and dredge up toxins.