Williams can still meet Northeast project start date

Natural gas infrastructure company Williams said it can still meet the planned start-up of its 400mn cf/d (11mn m³) Northeast Supply Enhancement project, despite the denial last month of a key water permit.

The company plans to refile for that permit soon with the New York Department of Environmental Conservation (DEC). Those regulators have denied Williams' applications for two water permits — one for the $930mn Northeast Supply Enhancement and another for the $748mn Constitution pipeline. Last week, the US Supreme Court rejected a request from Williams to consider reversing the denial for 628mn cf/d Constitution project.

The Northeast Supply Enhancement project can still begin providing service in December 2019, if it receives regulatory authorization, Michael Dunn, Williams chief operating officer said today on a conference call to discuss the company's first quarter results.

The project would funnel gas from the prolific Marcellus shale in Pennsylvania and the surrounding states into New York City.

"This is a very important project for New York and the Northeast," Dunn said. The project would displace about 3mn gallons of heating oil, curb emissions and reduce the need for LNG imports by allowing access to "some of the cheapest gas in the world," he noted.

The Northeast Supply Enhancement project would expand service on the Transcontinental Gas pipeline by adding about 37 miles (60km) of pipeline across New York, New Jersey and Pennsylvania, increasing horsepower at existing compressor stations and building a new compressor station in Somerset County, New Jersey.

The DEC said it denied the permit for the project because the application was incomplete and because of an ongoing environmental review may result in changes to the pipeline.

The DEC told the company prior to the denial that it needed more time to complete its review, Williams said.