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Federal court vacates New Jersey permit for $1 billion gas pipeline to New York City

Federal court vacates New Jersey permit for $1 billion gas pipeline to New York City

Rule Changes

Appeals court refuses to reconsider its September ruling, leaving New Jersey construction blocked and the 2027 service date in doubt

October 22nd, 2026: Third Circuit denies Transco's rehearing request

Overview

Updated 3 days ago

A federal appeals court on Oct. 22 refused to reconsider its ruling that threw out New Jersey's water-quality permit for the $1 billion Northeast Supply Enhancement pipeline. Without that permit, construction in New Jersey cannot start, and the developer says its November 2027 start-up date is in doubt.

Williams Companies said in September the ruling would not affect its schedule. Its subsidiary Transco then told the court on Sept. 22 that vacating the certification "will delay construction" in New Jersey, where a compressor station needs about 13 months to build. The rehearing request was denied without any order setting a deadline for state regulators.

Why it matters

Until New Jersey reissues the permit, a 13-month compressor build can't start and the gas supply fix for New York's 2027 winter slips.

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Key Indicators

$1B
Project cost
Estimated cost for the Northeast Supply Enhancement pipeline, which ENR describes as more than $1 billion.
400,000 dth/d
Daily capacity increase
Additional natural gas capacity to serve National Grid customers in New York City and Long Island.
≈60 km
New pipeline route length
Roughly 37 miles of new pipe and related facilities added to Transco's system.
13 months
Critical-path build time
Time Transco says it needs for Compressor Station 206 in Somerset County, a New Jersey component it calls critical to the schedule.

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People Involved

Cherice Corley
Cherice Corley
Spokesperson for Williams Companies
Said in September the ruling would not affect construction; the company's later court filing acknowledged delay in New Jersey

Organizations Involved

Williams Companies
Williams Companies
Energy infrastructure company
Says the 2027 service date is at risk after the appeals court refused to reconsider the vacatur

Major U.S. natural gas pipeline operator pursuing the $1 billion Northeast Supply Enhancement expansion.
Transcontinental Gas Pipe Line Co. (Transco)
Transcontinental Gas Pipe Line Co. (Transco)
Pipeline subsidiary of Williams
New Jersey construction blocked after the Third Circuit denied its rehearing request on Oct. 22

Williams subsidiary that operates the existing pipeline system and would build the new Raritan Bay segment.
New Jersey Department of Environmental Protection (NJDEP)
New Jersey Department of Environmental Protection (NJDEP)
State regulatory agency
Certification remains vacated; the Third Circuit set no deadline for the agency to act

State agency responsible for issuing Clean Water Act Section 401 certifications—and now subject to a federal vacatur.

Timeline

June 2019 October 2026

6 events Latest: October 22nd, 2026 · 1 week ago
Tap a bar to jump to that date

  1. Third Circuit denies Transco's rehearing request

    Latest Legal

    The appeals court rejected the petition for panel and full-court rehearing, leaving New Jersey's water quality certification vacated. It declined Transco's request to order NJDEP to act in time for construction to begin by Oct. 30; the mandate was expected to issue Oct. 29.

  2. Transco asks court to reconsider, citing delay

    Legal

    Transco petitioned the Third Circuit for rehearing, arguing NJDEP could fix the certification while it stayed in effect. The company told the court the vacatur 'will delay construction' in New Jersey and could jeopardize its Nov. 1, 2027 service date.

  3. ENR reports court decision and Williams response

    Media

    Engineering News-Record publishes details of the Third Circuit's ruling, including sediment contaminants and Williams' commitment to late 2027 service.

  4. Williams says construction timeline unaffected

    Statement

    Spokesperson Cherice Corley says company is working with state regulators and does not expect ruling to affect in-service date.

  5. Third Circuit vacates New Jersey certification

    Legal

    Court rules certification arbitrary and capricious for unresolved monitoring terms; sends case back to NJDEP.

  6. New Jersey rejects initial pipeline permit

    Regulatory

    NJDEP denies Transco's water quality certification, citing wetland impact, lack of demonstrated need,and sediment contamination in Raritan Bay.

Scenarios

1

NJDEP re-issues a fixed certification, pipeline proceeds on schedule

Possible Resolves by Q1 2027

Discussed by: Reuters, Williams spokespeople

NJDEP supplements the record, explicitly resolves monitoring thresholds,and reissues a revised certification that makes agency approval of adaptive-management plans a prerequisite to dredging. Williams then resumes construction and targets fourth-quarter 2027 service.

2

NJDEP denies again or Williams abandons project

Unlikely Resolves by End of 2027

Discussed by: Environmental groups, court opinion dissenting view

On remand, NJDEP concludes it cannot adequately explain how dredging will meet state water quality standards given the sediment contamination, ortakes new evidence warranting denial. Williams, facing endless delay, formally cancels NESE.

3

Transco reroutes project to avoid Raritan Bay dredging

Unlikely Resolves by Q2 2028

Discussed by: Engineering News-Record, industry analysts

Facing unresolved contamination issues, Williams submits a route change or switches to horizontal directional drilling to avoid disturbing sediment. A new certification application then becomes necessary, pushing the service date past 2028.

4

Transco takes the permit fight to the Supreme Court

Unlikely Resolves by Q2 2027

Discussed by: Engineering News-Record

ENR reported Oct. 26 that Transco could seek a stay of the Third Circuit's mandate while asking the U.S. Supreme Court to review the case. No such request appeared on the appeals court docket as of that date. A stay would let New Jersey work resume only if a valid water quality certification is also in place, which the vacatur removed.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

April 2016 – Julyớt 2020

Constitution Pipeline (2016–2020)

New York's Department of Environmental Conservation denied a Clean Water Act Section 401 water quality certificate for the 124-mile Constitution Pipeline, citing erosion and sediment concerns. Courts upheld the denial, and developer eventually abandoned the project.

Then

The pipeline never got built; developer Shell Midstream canceled it in ️2020 after years of litigation.

Now

Established that states can use 401 certification to block interstate gas pipelines even when federal approval exists.

Why this matters now

Like NESE, a state's 401 water permit became a decisive hurdle; here, however, New Jersey's permit was struck down for being too permissive, not too strict.

March 2018 – Juneớt 2023

Mountain Valley Pipeline (2018–2023)

The 303-mile Mountain Valley Pipeline through West Virginia and Virginia faced repeated federal court vacaturs of environmental permits, including clean water approvals, over procedural errors. Congress eventually passed a law mandating the pipeline's permits supersede court rulings.

Then

The pipeline completed and entered service in Julyớt 2024 after Congress intervened.

Now

Showed that regulatory missteps can cause multi-year delays that are often only resolved by extraordinary legislative action.

Why this matters now

NESE now enters a similar procedural-fix window; NJDEP could correct flaws, or the project could face years of additional court battles unless legislation or new permitting paths emerge.

Sources

(13)
+7
Engineering News-Record Reuters New Jersey Monitor (court document) MyCentralJersey Bloomberg Law EnerKnol Patch Pipeline & Gas Journal Construction Review Online U.S. Court of Appeals for the Third Circuit (court document) Mugglehead New Jersey Monitor Engineering News-Record