N.Y., N.J. Grant Key Permits for Williams Gas Pipeline
System Would Allow More New York City Buildings to Use Gas Instead of Dirtier-Burning Fuel Oil, Which Is Delivered by Trucks
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New York and New Jersey granted crucial permits for a long-stalled Williams Cos. pipeline project that would bring more natural gas to the New York City area from Pennsylvania.
Environmental regulators in both states approved certifications under the federal Clean Water Act for the company’s Northeast Supply Enhancement Project. It would expand an existing system delivering gas from Pennsylvania shale fields to Long Island and New York City, adding enough capacity to serve about 2.3 million homes.
The permits mark a stark turnaround for the project, which Williams has pursued for almost eight years. After New York denied it a permit amid pressure from environmentalists, Williams shelved the project last year. However, it was revived in the spring, after New York Gov. Kathy Hochul said she wouldn’t block it if President Donald Trump allowed construction to resume on a wind farm off Long Island.
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It comes as the president pushes to increase U.S. fossil fuel production and build large energy infrastructure projects.
Williams shares jumped as much as 3.1%.
“We need to govern in reality,” Hochul said in a statement. “We have adopted an all-of-the-above approach that includes a continued commitment to renewables and nuclear power to ensure grid reliability and affordability.”
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The project is designed to expand Williams’ existing Transco natural gas pipeline system, spanning Pennsylvania, New Jersey and New York. It would involve adding segments and changes to existing facilities, with a pipeline under Lower New York Bay.
The system would allow more New York City buildings to use gas instead of dirtier-burning fuel oil, which is delivered by trucks.
“We’re proud to move NESE forward and do our part in providing New Yorkers access to clean, reliable and affordable natural gas,” Williams CEO Chad Zamarin said. “This project reflects our commitment to deliver clean and reliable energy, while lowering energy costs and supporting economic growth and environmental stewardship.”
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The Natural Resources Defense Council sharply criticized New York’s decision to grant the permit, saying building the pipeline would destroy marine habitats and dredge up mercury, copper and other toxins under New York Bay.
“The pipeline would also harm sensitive shellfish beds and fishing areas and undercut billions of dollars New York has invested to improve water quality in the harbor,” Mark Izeman, a senior NRDC attorney said in a statement.
Williams has withdrawn its application for a second project, the Constitution Pipeline, to bring gas from Pennsylvania to New York. It comes after state regulators said the company failed to fulfill repeated information requests.
The company signaled it remains committed to the project, saying in a Nov. 7 release that it’s preparing to follow up with additional filings meant “to ensure that this critical infrastructure project obtains the regulatory approvals needed for construction and operation.”
The pipeline would serve New York, Massachusetts, Connecticut, Rhode Island, Vermont and Maine, according to the statement.
“There is increasing recognition that energy affordability directly impacts everyday affordability,” Zamarin said. “Natural gas is one of our nation’s lowest-cost resources.”
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