New York deals blow to $1b shale gas pipeline

Bloomberg

New York denied a key permit for a $1 billion Williams Cos. shale gas pipeline, dealing a critical blow to a project that would shuttle fuel to customers in New York City and Long Island.
The New York State Department of Environmental Conservation said that the pipeline would result in water quality violations, including those caused by kicking up hazardous metals and disturbing seabed habitats. The denial was “without prejudice,” meaning the company can reapply. Williams said in a separate statement that the DEC had raised “a minor technical issue” with the application, which it will resubmit quickly.
The decision comes as states tussle with the Trump administration over pipelines designed to carry abundant natural gas to the Northeast from shale basins in Pennsylvania, Ohio and West Virginia.
President Trump has taken action to speed up approval of interstate gas conduits, last month signing an executive order that aims to short-circuit state regulators who have held up projects by denying necessary permits amid environmental concerns.
Northeast Supply Enhancement, which would add pipeline segments in New York, Pennsylvania and New Jersey to an existing Williams system, joins a slew of gas proposals in the region that have faced delays. Construction of new conduits has failed to keep pace with growing demand for the heating and power-plant fuel, leading Consolidated Edison Inc. to stop accepting applications for new gas service in New York’s Westchester County.
Another proposed Williams pipeline, Constitution, remains stalled after failing to obtain a water permit from New York. The state’s regulators initially denied the certificate for Northeast Supply Enhancement last year, saying Williams submitted an incomplete application. Other gas projects in the region that have faced — or are expected to face — state-level delays include National Fuel Gas Co.’s Northern Access and Southern Co.’s and Enbridge Inc.’s PennEast.