US Northeast Transco expansion, Constitution Pipeline revivals in the works, Williams says

US midstream operator Williams is rekindling work on two Northeast natural gas pipeline projects that were shelved after facing strong opposition from states and interest groups in the region, the company confirmed with Platts May 29.

Williams said it has asked the US Federal Energy Regulatory Commission to reinstate its certificate of public convenience and necessity for its Northeast Supply Enhancement, a 400 MMcf/d expansion of Transcontinental Gas Pipe Line. The company also said it has begun "working through state permitting matters" with state environmental regulators in New Jersey, Pennsylvania and New York with respect to that project and the defunct Constitution Pipeline.

Williams "will be promptly filing applications with those agencies to secure the necessary permits for advancing both the NESE and Constitution Pipeline projects," a spokesperson said in an email.

"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."

Project revival

On the day of his inauguration in January, President Donald Trump declared a national energy emergency, the text of which singled out the Northeast, which is especially prone to gas and power price spikes during winter.

Trump separately stated his intent to revive Constitution, a 650 MMcf/d pipeline that would deliver Marcellus Shale gas to New York markets.

Both Northeast Supply Enhancement and Constitution were denied Clean Water Act Section 401 water quality certifications by states, which contributed to their cancellations. Williams canceled Constitution in 2020 and let the FERC certificate for NESE lapse in May 2024.

During a May 6 earnings call with analysts, outgoing Williams CEO Alan Armstrong said the NESE project would be "a lot easier to pull the trigger on" than Constitution.

Under the project's original certificate, NESE would have a capacity of 400,000 Dt/d and would include more than 17 miles of new 26-inch-diameter pipeline through New York Bay, Raritan Bay, and Middlesex County, New Jersey, and a new compression station in Somerset County, New Jersey. The capacity was intended to supply utility National Grid's customers in Brooklyn, Queens, and Long Island.

The 650 MMcf/d Constitution Pipeline was planned to deliver supply from Northeast Pennsylvania to downstream interconnections with Tennessee Gas Pipeline and Iroquois Gas Transmission in upstate New York.

If Williams seeks to revive Constitution, it could face competition from TC Energy and DT Midstream's Millennium Pipeline. The companies recently launched an open season for an expansion that would also transport Appalachian gas to an interconnect with Iroquois Gas Transmission in upstate New York, with a capacity of up to 500,000 Dt/d. That open season is scheduled to conclude May 29.

Supply outlets

The projects, if built, would provide additional gas takeaway capacity for Appalachia's gas producers, which identify regional pipeline constraints among the major barriers to production growth.

EQT executives, during their first-quarter earnings call April 23, said they only intend to grow gas volumes if they secure firm deals for the supply.

"I think that's where we're going to be for a little bit until we get back to a place where we get a market that is more well-connected with more pipeline infrastructure," CEO Toby Rice told analysts. "I think we need to be more prudent in making sure that we see the demand before we bring volumes."

As it was drawn up, Constitution was a joint venture, with Cabot Oil and Gas being a part owner and anchor shipper. Cabot, when it merged with Cimarex Energy in 2021, became producer Coterra Energy.

Coterra CEO Tom Jorden, during Q1 earnings, said the company is "participating" in the conversation around Constitution's revival.

"If that [project] were to go, the expectation is that we would make a commitment to deliver long-term volumes into that line," Jorden said May 6.