Commodities

New York approves $1B NESE natural gas pipeline


THE BLUEPRINT:

  • $1 billion Northeast Supply Enhancement (NESE) pipeline approved by

  • 37-mile expansion to Williams Transco system to boost gas supply

  • Backed by business groups; opposed by environmental advocates

  • Project expected to create 2,000 jobs and $548 million in economic activity

 

After it was rejected three times, a controversial $1 billion  pipeline project has been approved by the state Department of Environmental Conservation. 

The DEC announced its approval of required permits for the Northeast Supply Enhancement (NESE) pipeline project on Friday. The approval paves the way for the Transcontinental Gas Pipe Line Company to build a new 37-mile mostly underwater addition to an existing Williams Transco natural gas pipeline system that runs from Texas through parts of Pennsylvania and New Jersey, New York and onto Long Island. 

Map of the proposed Northeast Supply Enhancement pipeline project, with the expansion marked in red. / Courtesy of Williams

After facing pushback from environmental advocacy groups, the project had been squashed by previous New York and New Jersey administrations, but it was revived by a reported deal between Gov. and President in May to unfreeze the Empire Wind project in exchange for advancing the pipeline. New Jersey has joined New York in greenlighting the project. 

Advocates praised the approval. 

“This decision is the right one, for the right reason, at the right time,” said Kyle Strober, executive director of the Association for a Better Long Island (ABLI). “The reality is our region’s demand for energy continues to grow and without a robust infrastructure in place to meet that demand we run the risk of experiencing serious shortfalls in the not-so-distant future. The economic implications alone would be catastrophic and New York State, rightly so, has no intention of allowing that to happen. In addition, this approval is especially significant as we witness strategic changes in federal energy policies. A reliable source of energy is the bottom line in this decision.” 

ABLI was joined in lobbying for the pipeline project’s approval by a coalition of Long Island business groups, including the Long Island Association, Long Island Builders Institute, Long Island Contractors Association (LICA), Hauppauge Industrial Association of LI, Long Island Board of Realtors and Commercial Industrial Brokers Society of Long Island. 

“The Long Island Contractors’ Association applauds DEC’s approval of the NESE permits — a long-awaited decision that will support reliable energy and critical construction work for Long Island,” Marc Herbst, LICA’s executive director, said in a written statement. “This project will put local contractors and skilled trades to work strengthening the infrastructure that keeps our homes, hospitals, and businesses running. We appreciate DEC’s rigorous review process and its recognition that responsible, well-regulated projects like NESE are essential to meeting New York’s growing energy needs.” 

The project has faced stiff opposition from and several elected officials on Long Island, in New York City and New Jersey. 

“Today’s decision by the DEC is a devastating failure to protect New Yorkers from a dangerous and wrongheaded proposal,” Katherine Nadeau, deputy executive director of Environmental Advocates NY, said in a written statement. “By approving the NESE fracked gas pipeline, the DEC is discarding its own previous findings — required by state law and bolstered by science — that this project poses serious risks for our water, our marine life, and our and safety.” 

Williams, the company that would build the pipeline project, says the expansion of the system would add enough capacity to supply natural gas to the equivalent of 2.3 million homes, create about 2,000 jobs and generate $548 million in economic activity. The company had hoped to begin construction on the project before the end of the year, with completion slated for Q4 2027. 






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