Energy infrastructure projects typically do not follow a straight line. The way in which we measure the progress of large energy projects is more commonly determined by regulatory actions, design work, and behind-the-scenes coordination. Williams is currently developing many of these “behind the scenes” aspects of the Northeast Supply Enhancement project. Ultimately, that type of work will determine whether or not the project will eventually come to fruition.
A project focused on regional energy needs on a long-term basis
Williams is working to expand upon their proposed Northeast Supply Enhancement (NSE) natural gas pipeline project. The NSE project is intended to provide increased natural gas supply to the New York City Metropolitan Area and Long Island. The need for a reliable source of natural gas in the region has continued over time; however, the availability of pipeline capacity has been constrained.
Rather than create a completely new corridor for a pipeline, the NSE project is being developed as an expansion of an existing offshore pipeline. This design decision was intentional and reflects the company’s attempt to find a balance between increasing supply in the Northeast with the dense development patterns, sensitive environment, and the very limited availability of space for new infrastructure.
Ultimately, the NSE project is focused on providing reliability in one of the nation’s most energy-constrained markets, rather than growing the market for growth’s sake.
What “advancing work” looks like at this stage
There are many ways to advance a project such as NSE. Typically, the term “advancing work” refers to actual construction. However, at this stage in the project, much of the ongoing work relates to the refining of engineering details, regulatory interactions, and the preparation for the various permits and approvals necessary prior to proceeding with either offshore or onshore activities.
For Williams, the advancing work at this stage of the project includes continuing to interact with both federal and state agencies, as well as conducting technical planning to ensure seamless integration of the new pipeline system with the existing infrastructure. Regulatory review processes are complex in the Northeast. Timing is critical in addition to good design.
Although these types of efforts are not as obvious as construction, they are also often the most decisive. When a project finally receives all necessary approvals, the amount of uncertainty decreases significantly.
Why the NSE Project remains important for the Northeast
The Northeast Supply Enhancement (NSE) project has garnered substantial attention as a representation of how regional energy planning will occur. Natural gas is the primary fuel for heating and generating power in the Northeast, and also during peak demand periods in the winter.
Historically, pipeline constraints in the Northeast have prevented the region from increasing its gas supply. As a result, the region has relied on alternative fuels and/or importing gas to provide energy during times when no other alternatives were available. The goal of the NSE project is to increase the amount of natural gas flowing through the pipelines in the region. The NSE project is expected to alleviate some of the pipeline constraints that currently exist.
Therefore, the NSE project represents a larger issue that faces many mature energy markets: how to maintain reliability in light of environmental considerations, regulatory complexities, and aged infrastructure.
Measuring progress through preparation, not headlines
Projects similar to NSE typically will not have notable milestones for the first half of a project’s life cycle. Instead, success or failure is largely due to the amount of time spent on planning, coordinating, and persevering with each regulatory filing that pertains to the project, each technical update made, and each refinement made to the design of the project. Williams’ continued advancement of the Northeast Supply Enhancement project illustrates how modern pipeline projects are developed almost completely without fanfare prior to breaking ground.
