Williams, Partners Ditch Constitution Pipeline Plans

Williams Cos. Inc. and its partners Duke Energy, Cabot Oil & Gas and AltaGas, have cancelled plans for the Constitution Pipeline, the proposed Pennsylvania to New York gas pipeline that sparked a battle between environmental activists and development supporters for nearly eight years.
The project was designed to consist of a new 30-inch, 125-mile pipeline with a capacity to transport 650,000 dekatherms of natural gas per day from the Marcellus Shale, according to Williams.
“While Constitution did receive positive outcomes in recent court proceedings and permit applications, the underlying risk adjusted return for this greenfield pipeline project has diminished in such a way that further development is no longer supported,” Williams said in a written statement on Feb. 24.
“Our existing pipeline network and expansions offer much better risk adjusted return than greenfield opportunities, which can be impacted by an ambiguous and vulnerable regulatory framework. We are prepared to deliver the clean energy benefits of natural gas now through infrastructure projects like Regional Energy Access, Leidy South and the Northeast Supply Enhancement. And as communities and leaders recognize the important role natural gas has played in U.S. emissions reductions – and recognize the ability to further lower emissions through use of natural gas in the future – we stand ready to deliver,” the statement concluded.
The decision to halt investment in the pipeline was on the heels of Williams’ recent earnings update, which revealed that its fourth quarter and full year 2019 earnings were negatively impacted by a $354 million impairment of the Constitution project.
To contact the author, email bertie.taylor@rigzone.com.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Oil Groups Talk Federal Lease Freeze
- China Oil Demand at Risk
- Lundin Contracts Odfjell Rig for Up to Nine Wells
- Zennor Achieves Carbon Neutrality
- Oil Steady as Demand Fears and Tighter Supply Mingle
- BP Directly Supplies China Gas Customers with LNG
- Schumer Wants Biden to Bypass Congress on Climate
- Permian Flaring Report Contrasts with RRC Stance
- Tullow Spuds Well Offshore Suriname
- Diamond Offshore Announces Restructuring Plan
- Biden Set to Freeze Oil Leasing on Federal Land
- TC Energy Reacts to Keystone Pipeline Development
- Alberta Leader Urges Keystone Retaliation
- DOE Announces New Senior Leaders
- Shell Reshapes Malaysia Business
- Woman to Lead New Middle East Oil Firm
- Equinor SVP Joins Aker Solutions
- Oil Groups Talk Federal Lease Freeze
- Iran Says it is Reviving Oil Output
- TC Energy Cuts 1,000 Jobs After Biden Yanks Permit
- Executives Predict 2021-End Oil Price
- Shale Needs More to Boom Again
- Oil Discovery Made in US Gulf of Mexico
- Biden Set to Freeze Oil Leasing on Federal Land
- Troops Fight Off Attack Near $20B LNG Project
- Pacific Drilling Expects Ch11 Emergence by End 2020
- BLM Finalizes Alaska Activity Plan
- TC Energy Reacts to Keystone Pipeline Development
- Qatar and Four Arab States to Fully Restore Ties
- ADNOC Creates New Directorate