Williams NESE Gas Pipeline Not Better the Second Time Around

Strategic Insights -

The Northeast Supply Enhancement (NESE) gas pipeline, proposed by Williams Company, is facing renewed scrutiny from environmental and economic experts. Despite its initial rejection in 2020, National Grid is pushing to revive the project, which aims to transport fracked natural gas from Pennsylvania to downstate New York for combustion in homes, businesses, and power plants. However, a recent report from the Institute for Energy Economics and Financial Analysis (IEEFA) challenges the economics of the project, raising concerns about its costs, job creation, and environmental impact.

Key Takeaways:

  • Downstate New Yorkers would be responsible for paying construction costs, which are likely to be higher than projected, and developer profits if the NESE pipeline is built.
  • The pipeline would provide no direct permanent jobs in New York, with only about 9% of construction jobs situated in the state.
  • NESE profits would largely go out of state to a Tulsa-based company, rather than benefiting the local economy.
  • The assertion that NESE would reduce electricity bills is questionable, and downstate New Yorkers may not see any savings due to the costs of paying for the pipeline.
  • Downstate New York does not face an urgent need for more gas, as the 2025 forecast indicates a supply-demand gap would not be imminent until 2041/42.
  • Additional strategies can reduce gas demand and provide a more cost-effective energy future for New York.

Statistics:

  • 9% of construction jobs would be sited in New York (Source: IEEFA).
  • NESE profits would largely go out of state to a Tulsa-based company (Source: IEEFA).
  • The 2025 forecast indicates a supply-demand gap would not be imminent until 2041/42 (Source: IEEFA).
  • Downstate New Yorkers would pay for construction costs and developer profits, with potential negotiated savings on electricity prices potentially offset by pipeline costs.

Sources:

  • Institute for Energy Economics and Financial Analysis (IEEFA). (2022). Williams NESE Gas Pipeline Not Better the Second Time Around.
  • IEEFA. (2022). Northeast Supply Enhancement Project: IEEFA's Public Comments. September 5, 2025.