Legal ruling threatens $1 billion natural gas pipeline project

A federal appeals court ruling has jeopardized the timeline for the $1 billion Northeast Supply Enhancement natural gas pipeline project. The U.S. Court of Appeals for the Third Circuit denied a petition from Transcontinental Gas Pipe Line Co., a unit of Williams Cos., to rehear a decision that vacated New Jersey’s water-quality certification.

The ruling returns the certification process to the New Jersey Department of Environmental Protection (NJDEP). The agency must now determine whether to issue a revised approval or request further analyses. Without a valid state certification, the Federal Energy Regulatory Commission cannot authorize construction in New Jersey.

The 37-mile expansion is intended to increase capacity by 400,000 dekatherms per day to serve National Grid customers in New York City and Long Island. Transco warned that the delay threatens the project’s target in-service date of November 1, 2027, which is critical for the 2027-28 winter heating season.