Construction Begins for Transco Gas Pipeline Expansion

Williams Companies Inc on Tuesday broke ground for the Trump-backed Northeast Supply Enhancement (NESE) project, which will expand the Transco natural gas pipeline system with a capacity addition of 400,000 dekatherms per day.

"The added capacity improves grid stability and supply security across New York, New Jersey and Pennsylvania, helping energy providers keep homes heated, businesses operating and critical infrastructure running as demand continues to grow", the Tulsa, Oklahoma-based gas infrastructure company said in an online statement.

Running from Pennsylvania to New York, the 10,000-mile Transco currently has a daily transmission capacity of 19.5 million dekatherms and a storage capacity of 200 million dekatherms, according to Williams.

The added capacity from NESE, expected to start operation 2027, represents consumption by 2.3 million homes, Williams said.

"President [Donald] Trump and his National Energy Dominance Council worked across party lines to secure the necessary permits for this project from the states of New York and New Jersey last fall", the Energy Department said in a separate statement.

The department added, "Up next on the priority list: getting Constitution Pipeline approved to allow many New England residents to tap into the same abundant resources, especially during brutally cold winter months. This project has been blocked by Democrats in Albany".

The Federal Energy Regulatory Commission (FERC) first granted NESE a certificate of public convenience and necessity in 2019, authorizing Williams, through Transcontinental Gas Pipe Line Co LLC (Transco), to build and operate NESE. FERC vacated the permit 2024 after Transco allowed the authorization to expire earlier that year following a battle with environmental groups.

Williams successfully requested the reissuance of the certificate last year. "Transco maintains that strong market demand for the project remains and states that it has executed new precedent agreements with the previous project shippers for 100 percent of the project's firm transportation service", FERC said in a decision August 28, 2025 reissuing the permit. "The precedent agreements provide for the parties to execute 15-year service agreements under Transco’s Rate Schedule FT".

The previous 15-year agreements with Brooklyn Union Gas Co and KeySpan Gas East Corp, both part of National Grid, involved 211,300 dekatherms per day and 188,700 dekatherms per day respectively.

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