Federal court vacates New Jersey permit for $1 billion gas pipeline to New York City

Overview

Updated Yesterday

A federal appeals court on Sept. 8 vacated New Jersey's water-quality permit for the $1 billion Northeast Supply Enhancement gas pipeline, sending it back to state regulators for another round of review. The ruling is the latest twist in a project New Jersey initially rejected in 2019.

The court found the state's approval left unresolved thresholds for monitoring dredging in Raritan Bay, where sediment contains mercury, PCBs, and DDT breakdown products. Williams says it still expects to begin service in late 2027.

Why it matters

If this permit stays tied up in court, New York City's gas supply fix slips past 2027—while toxic sediment dredging lacks enforceable limits.

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Key Indicators

$1B

Project cost

Estimated cost for the Northeast Supply Enhancement pipeline.

400,000 dth/d

Daily capacity increase

Additional natural gas capacity to serve National Grid customers.

≈60 km

New pipeline route length

Combined new pipe and facilities adding roughly 37 miles of line capacity.

Voices

Curated perspectives — historical figures and your fellow readers.

Ever wondered what historical figures would say about today's headlines?

People Involved

Cherice Corley

Spokesperson for Williams Companies

Communicating company position on court decision

Organizations Involved

Williams Companies

Energy infrastructure company

Owner of Transco and sponsor of NESE project

Major U.S. natural gas pipeline operator pursuing the $1 billion Northeast Supply Enhancement expansion.

Transcontinental Gas Pipe Line Co. (Transco)

Pipeline subsidiary of Williams

Applicant for the NESE water quality certification

Williams subsidiary that operates the existing pipeline system and would build the new Raritan Bay segment.

New Jersey Department of Environmental Protection (NJDEP)

State regulatory agency

Must reconsider water quality certification after court-ordered remand

State agency responsible for issuing Clean Water Act Section 401 certifications—and now subject to a federal vacatur.

Timeline

June 2019 September 2026

4 events Latest: Yesterday

Tap a bar to jump to that date

September 2026
ENR reports court decision and Williams response
Latest Media

Engineering News-Record publishes details of the Third Circuit's ruling, including sediment contaminants and Williams' commitment to late 2027 service.
Yesterday
Williams says construction timeline unaffected
Statement

Spokesperson Cherice Corley says company is working with state regulators and does not expect ruling to affect in-service date.
3 days ago
Third Circuit vacates New Jersey certification
Legal

Court rules certification arbitrary and capricious for unresolved monitoring terms; sends case back to NJDEP.
4 days ago
June 2019
New Jersey rejects initial pipeline permit
Regulatory

NJDEP denies Transco's water quality certification, citing wetland impact, lack of demonstrated need,and sediment contamination in Raritan Bay.
June 5th, 2019

Scenarios

NJDEP re-issues a fixed certification, pipeline proceeds on schedule

Possible Resolves by Q1 2027

Discussed by: Reuters, Williams spokespeople

NJDEP supplements the record, explicitly resolves monitoring thresholds,and reissues a revised certification that makes agency approval of adaptive-management plans a prerequisite to dredging. Williams then resumes construction and targets fourth-quarter 2027 service.

NJDEP denies again or Williams abandons project

Unlikely Resolves by End of 2027

Discussed by: Environmental groups, court opinion dissenting view

On remand, NJDEP concludes it cannot adequately explain how dredging will meet state water quality standards given the sediment contamination, ortakes new evidence warranting denial. Williams, facing endless delay, formally cancels NESE.

Transco reroutes project to avoid Raritan Bay dredging

Unlikely Resolves by Q2 2028

Discussed by: Engineering News-Record, industry analysts

Facing unresolved contamination issues, Williams submits a route change or switches to horizontal directional drilling to avoid disturbing sediment. A new certification application then becomes necessary, pushing the service date past 2028.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

April 2016 – Julyớt 2020

Constitution Pipeline (2016–2020)

New York's Department of Environmental Conservation denied a Clean Water Act Section 401 water quality certificate for the 124-mile Constitution Pipeline, citing erosion and sediment concerns. Courts upheld the denial, and developer eventually abandoned the project.

Then

The pipeline never got built; developer Shell Midstream canceled it in ️2020 after years of litigation.

Now

Established that states can use 401 certification to block interstate gas pipelines even when federal approval exists.

Why this matters now

Like NESE, a state's 401 water permit became a decisive hurdle; here, however, New Jersey's permit was struck down for being too permissive, not too strict.

March 2018 – Juneớt 2023

Mountain Valley Pipeline (2018–2023)

The 303-mile Mountain Valley Pipeline through West Virginia and Virginia faced repeated federal court vacaturs of environmental permits, including clean water approvals, over procedural errors. Congress eventually passed a law mandating the pipeline's permits supersede court rulings.

Then

The pipeline completed and entered service in Julyớt 2024 after Congress intervened.

Now

Showed that regulatory missteps can cause multi-year delays that are often only resolved by extraordinary legislative action.

Why this matters now

NESE now enters a similar procedural-fix window; NJDEP could correct flaws, or the project could face years of additional court battles unless legislation or new permitting paths emerge.