On August 28, 2025, FERC reauthorized Transcontinental Gas Pipe Line Company, LLC’s (Transco) Northeast Supply Enhancement Project (NESE) to deliver natural gas supply to the Northeast, including the New York City area. FERC previously issued a certificate of public convenience and necessity (CPCN) for NESE in 2019, but Transco let the CPCN lapse in 2024. Transco sought reissuance of a CPCN for the project on an expedited basis at the end of May this year. In its August 28 order, FERC found that Transco demonstrated a need for the project and that the project was an environmentally acceptable action.
NESE is designed to provide up to 400,000 dekatherms/day of incremental firm transportation service in the Northeast by expanding Transco’s system in Pennsylvania and New Jersey and its offshore pipeline system in New Jersey and New York state waters. FERC originally issued a CPCN for the project in May 2019 but conditioned authorization on Transco receiving all applicable permits prior to commencing construction and placing the project into service by May 3, 2021. Transco subsequently requested, and received, extensions to place the project in service due to permitting delays in 2021 and again in 2024, with a final in-service deadline of May 3, 2024. However, in April 2024, Transco informed FERC that it planned to let the NESE CPCN expire and would not seek an additional extension. FERC thereafter vacated the CPCN.
On May 29, 2025, Transco requested reissuance of a CPCN for NESE on an expedited basis, stating that the purpose, scope, and impact of the project had not changed since issuance of the original certificate in 2019. Transco maintained there was still strong market demand for the project and explained it had executed new precedent agreements with project shippers for 100% of the project’s firm transportation service. Transco further stated it was in discussions with state officials to obtain the necessary permits to construct and operate the project.
As a threshold issue, certain protesters argued FERC did not have authority to simply reissue a CPCN for NESE after it had vacated the original CPCN. Instead, such protesters argued Transco needed to submit a new, full pipeline certificate application to FERC under Section 7 of the Natural Gas Act (NGA). However, FERC held that Transco was not requesting an extension of the vacated original CPCN, but rather a new project review under NGA Section 7. After such review, FERC again found that (i) Transco had demonstrated sufficient need for NESE, as evidenced by precedent agreements and market study reports, and (ii) the project met the requirements of FERC’s Certificate Policy Statement. Notably, FERC did not conduct additional environmental review compared to its original environmental analysis in 2019. Instead, FERC concluded the project resource areas had not changed since the initial review and continued to find that the project was an environmentally acceptable action. The reissued CPCN is contingent upon Transco placing NESE into service by August 28, 2028.
FERC’s order, issued in docket No. CP17-101-007, can be accessed here.
