New pipeline
projects are moving forward in the Northeast after the U.S. government removed
some barriers for approvals that have been hampering buildout for several
years. In-region demand continues to grow as more coal plants are retired and
as demand from AI data centers continues to grow. Out-of-region demand is
highlighted by LNG export capacity growth, which is expected to continue as
well. The Appalachian Basin region, with its shale plays: Marcellus, Utica, and
the smaller Burket play, continues to have the best natural gas economics in
the U.S. Thus, the potential profit margin is high if that gas can be moved to
LNG export terminals.
Environmentalists have been the
main cause of limiting natural gas pipeline access to New England. Allowing
more natural gas into the region would decrease electricity costs for residents
and for industry. It would also result in better air quality during winter cold
spells, as diesel would not have to be burned. It would improve both winter and
summer power reliability. That is a ‘no-brainer’ to most of us, but the
environmental lobby, with the help of anti-fossil fuel governors and
regulators, has been able to keep that no-brainer from occurring, to the
detriment of consumers. The recent scrapping of offshore wind projects also
means that planned capacity will likely be replaced, and natural gas is the
best option.
Enbridge’s AGT Enhancement project plans to increase its peak-demand period capacity by 75MMCF/day on its Algonquin Gas Transmission (AGT) pipeline system from New Jersey to eastern New England.
The plans for this upgrade include looping, building larger pipelines
through some sections, and compressor upgrades, as detailed below. Doing these
kinds of upgrades instead of building new lines makes it easier to get approval
from state regulators, typically unwilling to approve new pipelines and routes.
FERC has agreed to expedite its
review of the project. It also has plans to increase capacity further on that
system, as RBN details below.
“In mid-May, the midstream giant unveiled plans for
Project Beacon, which — depending on the results of a simultaneously issued
open season — could add another 300 MMcf/d of capacity to the system (and
possibly even more) by late 2030 through a series of physical and operational
improvements.”
It is likely that similar
upgrades: looping, larger diameter pipe, and more compression, will be
implemented in Project Beacon. They also believe that the project will stick to
existing rights of way, as they are doing in the current upgrades.
“Persistent constraints in the region limit the system’s
ability to meet growing peak-day demand, which drives sustained basis
differentials between New England and upstream production areas.” The company
stated that “additional pipeline capacity dedicated to gas-fired generation is
essential to providing rapid ramping capacity” — that is, the ability of a
power plant to quickly increase its generation of electricity. It said AGT is
“offering a solution to close this gap with dedicated transportation capacity
paired with in-region storage” to meet the variable needs of gas-fired
generators and other gas users.”
Midstream company Williams has two
northeast pipeline projects in the works. The first is the Northeast Supply
Enhancement (NESE), which was cancelled long ago but revived in 2025 with Trump
administration support and state approvals. It is currently under construction
and expected to be in service in 4Q 2027.
Williams operates the
10,000-mile-plus Transco system, of which these enhancements are a part. The
project is expected to involve 36.4 miles of looping, pipe size increases,
compression increases, and compression upgrades. It is expected to provide 400
MMcf/d of firm transportation capacity to gas utility National Grid’s service
territory in three of New York City’s five boroughs (Staten Island, Brooklyn,
and Queens) and Long Island’s Nassau and Suffolk counties.
Williams’ Constitution Pipeline is
a 125-mile, 650-MMcf/d project that was approved by FERC in 2014, denied water
permits by the State of New York in 2016, and cancelled in 2020. The pipeline
route originates in Susquehanna County, Pennsylvania, one of the counties in
the state with the highest Marcellus gas production. This is dry gas, which
needs minimal treatment to be pipeline-ready. As RBN points out, this line
would also connect three important large pipelines, giving some optionality to
moving gas to where it is needed faster.
Below, they discuss the challenges
to revive this pipeline. Many of us believe this pipeline should have been
built a decade ago and would by now have improved power reliability and lowered
electricity costs in the region.
“The Constitution project’s prospective revival faces
two significant challenges, however, and its fate is uncertain. One is that the
state of New York is opposing Williams’s December 2025 request that FERC
reissue the project’s CPCN. The other is that, unlike the NESE project, whose
development was based on the needs of one gas utility in a single state, the
Constitution project would require long-term commitments from multiple gas
buyers in two or more states.”
“Asked about the project’s prospects during Williams’s
May 5 earnings call, CEO Chad Zamarin said that to make the project a go, “we
have to coalesce a critical mass” of customer interest — something Williams
continues to pursue as it fights legal challenges to its request to FERC to
reissue its CPCN. “That's really the challenge with Constitution. It’s just a
much more fragmented market and a lot of different constituencies that need to
come together. ... We’re going to keep at it.”
References:
Movin’
Out – The Pipeline Projects That Will Move More Natural Gas Through (and Out
of) the Northeast. Housley Carr. RBN Energy. June 8, 2026. Movin’
Out – The Pipeline Projects That Will Move More Natural Gas Through (and Out
of) the Northeast | RBN Energy
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