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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

Third Circuit sends Northeast Supply Enhancement back to state regulators over Raritan Bay contamination concerns

Today: ENR reports court decision and Williams response

Overview

Updated 17 minutes ago

A federal appeals court on Sept. 8 vacated New Jersey's water-quality permit for the $1 billion Northeast Supply Enhancement gas pipeline, sending it back to state regulators for another round of review. The ruling is the latest twist in a project New Jersey initially rejected in 2019.

The court found the state's approval left unresolved thresholds for monitoring dredging in Raritan Bay, where sediment contains mercury, PCBs, and DDT breakdown products. Williams says it still expects to begin service in late 2027.

Why it matters

If this permit stays tied up in court, New York City's gas supply fix slips past 2027—while toxic sediment dredging lacks enforceable limits.

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Key Indicators

$1B
Project cost
Estimated cost for the Northeast Supply Enhancement pipeline.
400,000 dth/d
Daily capacity increase
Additional natural gas capacity to serve National Grid customers.
≈60 km
New pipeline route length
Combined new pipe and facilities adding roughly 37 miles of line capacity.

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People Involved

Organizations Involved

Timeline

June 2019 September 2026

4 events Latest: Today
Tap a bar to jump to that date
  1. ENR reports court decision and Williams response

    Today Media

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

  2. 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.

  3. 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.

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

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