“The Constitution Pipeline Is Essential to the Northeast, and Trump Needs to Keep the Pressure On Everyone Until It's Completed”, By Jim Willis THOMAS J SHEPSTONE
“Just yesterday, we told you that Interior Secretary Doug Burgum announced at CERAWeek that the federal government would “step in” to complete the Constitution if necessary….”
The Constitution Pipeline Is Essential to the Northeast, and Trump Needs to Keep the Pressure On Everyone Until It's Completed
MAR 17
Guest post by Jim Willis of Marcellus Drilling News.
This is the news we’ve been eagerly waiting for. Over the past month, the Trump administration, beginning with The Donald himself, has been talking up a resurrection of the 124-mile, 660 MMcf/d Constitution Pipeline from the gas fields of northeastern Pennsylvania (in Susquehanna County) into and through New York, to Schoharie County, to move Marcellus gas into New York State and New England.
Just yesterday, we told you that Interior Secretary Doug Burgum announced at CERAWeek that the federal government would “step in” to complete the Constitution if necessary (see Feds Will “Step In” to Build Marcellus-to-New England Pipeline). The billion-dollar question has been, will Williams, the builder and operator of the project, be willing to resurrect and build it? We now have an answer.
Williams and its partners pulled the plug on the project in early 2020 due to opposition from New York State (see Sad Day: Williams Declares Constitution Pipeline Project Dead). The state caused years of delays with challenges and litigation, which eventually resulted in Williams winning in court. But at that point, the company had moved on to other projects, moving gas south instead of north, where it’s easier to build new pipeline projects.
A month ago, when Trump announced, “We are going to get this [Constitution Pipeline] done, and once we start construction, we’re looking at anywhere from nine to 12 months,” we were blown away (see Stop Press! Trump Pledges to Revive PA-to-NY Constitution Pipeline). The question remained: Would Williams step back up to the plate?
Williams CEO Alan Armstrong answered that question during a talk and follow-up interviews on Wednesday at CERAWeek. Yes, Williams is still interested, we’d call it actively interested, but only under some major conditions. Essentially New York (and New England) will have to “roll out the red carpet” and cooperate to build the project.
Williams lost $400 million trying to build the Constitution the first time and will not re-engage until the company receives support for states and local municipalities. Oh, and Williams won’t build until northeastern states (and localities), like those in Massachusetts, get rid of their bans on using natural gas. Can an anti-fossil fuel liberal Democrat zebra change its stripes? We will find out.
From NGI:
Even with the president’s support, though, the project is not possible without the region’s support, Armstrong said Wednesday at CERAWeek by S&P Global.
“We’re not going to go putting our neck out until they invite us with the red carpet rolled out,” he said.
President Trump in February had said “all of the governors want this to happen, and I think it’s going to happen. It’s now going to happen.”
However, Armstrong said additional assurances were needed, including by New York Gov. Kathy Hochul, whose state was instrumental in ensuring Constitution’s demise.
“We’re not going to until the governors up there, collectively including Hochul, say they’re going to come right out and be supportive of getting the infrastructure built,” Armstrong said.
Assurances also are needed that the Northeast’s leaders, including Massachusetts and New York, “eliminate natural gas bans in their markets,” he said. “Until that stuff happens, we’re not going to put capital at risk into those markets.”
From Barron’s:
“We’re not gonna go putting our neck out until they invite us with the red carpet rolled out,” said Alan Armstrong, CEO of pipeline giant Williams Cos., in an interview with Barron’s on the sidelines of the CERAWeek conference in Houston.
Armstrong said that Williams lost hundreds of millions of dollars trying to build two failed pipelines into the Northeast over the past decade. One was the Constitution Pipeline, which would stretch 124 miles from the gas fields of Pennsylvania to New York, near Albany. From there, the gas would connect to other pipelines that could take it into New England. That project died in 2020 after New York denied the company water quality permits…
Armstrong reiterated at a press conference on Wednesday that he needs to see backing from Northeastern states before moving forward with Constitution, but said that he supports the administration’s attempts to get the pipeline done and will try to figure out ways to proceed…
Pipeline companies have considered projects in the Northeast for years—given the large population and high energy demands—but have been stymied in their efforts to get pipelines built. Environmental groups say that building new infrastructure will only lock in fossil fuel use for decades, adding to the climate crisis. Governors in Northeastern states have largely opposed new pipelines, instead focusing on investing in renewable power generation from sources like offshore wind.
Armstrong says he doesn’t want to deal with that regulatory environment again.
“We’re not going to until the governors up there, collectively, including [New York Gov. Kathy] Hochul, say they’re going to come right out and be supportive of getting the infrastructure built,” Armstrong said. “That they’re going to eliminate natural gas bans in their markets. Until that stuff happens we’re not going to put capital at risk into those markets.”
…
“We have so much more demand for gas to the south—so many more projects—that we’re not gonna stick our neck out” to try to invest in the Northeast, he said.
Finally, from Hart Energy:
Armstrong also discussed an older project that has resurfaced in recent news reports: the stalled Constitution Pipeline.
In February, President Donald Trump said he wanted the project to be completed, saying it could reduce energy costs in parts of the Northeast U.S. by 70%.
The Constitution Pipeline would ship natural gas from Appalachia to terminals connecting to New England—a region of the U.S. that occasionally imports LNG due to the lack of pipeline infrastructure in the region. In 2018, for instance, an LNG tanker offloaded natural gas produced at a Russian facility in Boston Harbor.
In 2020, then-New York Gov. Andrew Cuomo canceled the pipeline project. Williams was one of the primary partners behind the project.
Following Trump’s statement, several news sources reported that the company was cold to the idea because of the current hostility to pipeline projects in the area. Armstrong said Williams would be more than happy to finally complete the Constitution project if the governments in the area are amenable.
“We are absolutely in support of building the Constitution Pipeline,” he said. “We absolutely intend to try to get Constitution built, but obviously we’re going to be working to try to gain the states’ support and the local support in those areas as well.”
So it seems Williams will need support, and that (based on the statement reported by Hart Energy), the company will “try to get Constitution built.” Indicating there’s some momentum and motion in place right now. We deem that to be fantastic news. The question is: Will New York’s Governor Kathy Hochul and the dunderhead Governor of Massachusetts, Maura Healey, relent and (at least begrudgingly) support it?
Our take: Don’t underestimate Donald Trump. At the same time, given the entrenched religious zealotry of climate change hoaxers like Kathy Hochul, we wonder if getting the libs on board will happen. Right now, we say it’s 50/50. But again, don’t underestimate DJT! He’s done things we didn’t think possible.
Editor's Note: Jim, as usual, sums it up perfectly. And, who cannot sympathize with Williams in not wanting to get burnt once again by New York? Nevertheless, there are two important points not addressed in the three quoted interviews.
First, there is the fact Williams was extraordinarily naive in its approach last time. I recall speaking with Williams reps at a legal conference shortly after the company withdrew and resubmitted its application to New York for the third time on the promise by Cuomo’s people that it was all just procedural and approval was just around the corner. I was astounded they believed anything coming from the Cuomo gang and, of course, the permit was denied. They should have fought hard from the beginning, as Millennium Pipeline did with one of their projects. But, Williams didn’t fight until they lost.
Secondly, Williams, when it finally went to court, did win, in Federal Court and at FERC, and then dropped the project! That was an unforgivable slight to hundreds and hundreds of labor union members and other supporters who stuck with them all the way, only to be kicked to the curb when it mattered, so it's hard for me to be as understanding of the Williams position as I would like to be. Moreover, I’m a little tired of the industry saying they have better opportunities elsewhere when that means another win for our common enemies, and gives encouragement to fractivist groups outside the Northeast. If pipeline companies want to tear down barriers to pipeline construction, as we all do, they need to fight in places such as New York and, indeed, everywhere.
Notwithstanding these points, we want this pipeline, and the Northeast needs it, so let's hope Trump lays the pressure on all parties involved. If anyone can accomplish it, he can, so Godspeed!
#MarcellusDrillingNews #Cuomo #Trump #ConstitutionPipeline #NaturalGas #Pipelines #Williams
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