U.S. energy regulators on May 20 approved Williams Cos. Inc.’s request for two more years, until May 2023, to build the proposed Northeast Supply Enhancement (NESE) project to transport natural gas from Pennsylvania to New York.
The U.S. Federal Energy Regulatory Commission (FERC) approved the roughly $1 billion project, which includes an offshore pipe between New Jersey and Long Island, N.Y., in May 2019.
That approval required Williams to put the project in service by May 2021.
But Williams had to put NESE on hold because environmental regulators in New York and New Jersey did not approve water permits for the project.
Williams said it intends to refile water permit applications in both states before year-end 2021 and “remains fully committed to constructing the project.”
That was not the first time state regulators denied permits, called water quality certification, for the project.
After New York regulators denied water certification, the U.S. unit of British-energy firm National Grid Plc, which agreed to buy gas from Williams’ pipeline, imposed a moratorium on signing new customers in May 2019.
National Grid, which serves about 1.8 million customers in Brooklyn, Queens, Staten Island and Long Island, said it would not have enough gas to supply existing and new customers without the pipe.
That prompted New York Gov. Andrew Cuomo to threaten to revoke National Grid’s license to operate its gas utility.
Ultimately, National Grid in November 2019 agreed to end the moratorium and pay $36 million, mostly on conservation and clean energy projects.
If built, NESE would add about 37 miles of new pipeline and transport an additional 0.4 billion cubic feet per day of gas from Pennsylvania to New York. One billion cubic feet is enough gas for about 5 million U.S. homes for a day.
Recommended Reading
E&P Highlights: Feb. 24, 2025
2025-02-24 - Here’s a roundup of the latest E&P headlines, from a sale of assets in the Gulf of Mexico to new production in the Bohai Sea.
E&P Highlights: Jan. 27, 2025
2025-01-27 - Here’s a roundup of the latest E&P headlines including new drilling in the eastern Mediterranean and new contracts in Australia.
McDermott Completes Project for Shell Offshore in Gulf of Mexico
2025-03-05 - McDermott installed about 40 miles of pipelines and connections to Shell’s Whale platform.
E&P Highlights: Jan. 13, 2025
2025-01-13 - Here’s a roundup of the latest E&P headlines, including Chevron starting production from a platform in the Gulf of Mexico and several new products for pipelines.
E&P Highlights: March 10, 2025
2025-03-10 - Here’s a roundup of the latest E&P headlines, from a new discovery by Equinor to several new technology announcements.