N.J. and N.Y. regulators approve $1B underwater natural gas pipeline permits

Regulators from New Jersey and New York have approved environmental permits needed for the Northeast Supply Enhancement (NESE) project, which will deliver natural gas from Pennsylvania to New York City through New Jersey and pipelines beneath Raritan Bay and New York Harbor.

The Williams Company, owner of the Transcontinental Pipeline Co. (TRANSCO), will drill piles into the bay floor with mechanical hammers and pistons to mount 23 miles of pipes underwater.

The NESE project is set to provide $1.8 billion in economic development, delivering gas to 2.3 million homes in the city, and reducing CO2 emissions by over 13,000 tons per year; equivalent to removing 2,800 cars from the road each year.

NESE also supports over 3,000 jobs and generates millions in gross state product (GSP) and state tax revenues for the state. During the construction phase of the project, the state of New Jersey will experience an increase in economic activity, including direct and indirect job creation and an increase in state and local tax revenue.

“We’re proud to move NESE forward and do our part in providing New Yorkers access to clean, reliable and affordable natural gas,” said Chad Zamarin, president and CEO of Williams. “This project reflects our commitment to deliver clean and reliable energy while lowering energy costs and supporting economic growth and environmental stewardship.”

“We are pleased to see that the DEP has approved the permit for this much-needed regional pipeline project,” said New Jersey Business & Industry Association Deputy Government Affairs Officer Ray Cantor. “This project will allow more natural gas to flow into a region that desperately needs it.”

Despite the proposed benefits, environmental groups have opposed the project. Additionally, several nonprofits, homeowners and conservation groups sued over the project Oct. 30 in the U.S. Court of Appeals for the District of Columbia Circuit after the Federal Energy Regulatory Commission reissued authorization for NESE.