Gas pipeline expansion creates economic opportunity in the northeast

Williams has released the results of a comprehensive study authored by researchers at Rutgers University analyzing the economic impact of the proposed Northeast Supply Enhancement project.

The Northeast Supply Enhancement project is a nearly $1 billion energy infrastructure investment designed to increase natural gas deliveries to New York City in time for the 2019/2020 winter heating season.

Click image for larger view.

According to researchers at the Edward J. Bloustein School of Planning and Public Policy, the design and construction of the Northeast Supply Enhancement project will generate approximately $327 million in additional economic activity (GDP) in Pennsylvania, New Jersey and New York. In addition, the project will directly and indirectly generate 3,186 jobs during the construction period, resulting in an estimated $234 million in labor income.

The economic modeling exercise uses the R/ECON Input-Output Model, which was developed at the Bloustein School to measure the economic and fiscal impacts of infrastructure investments, business operations, and other economic events. The Bloustein School is one of the nation’s leading centers for the theory and practice of planning and public policy scholarship and analysis.

“This broad analysis conducted by Rutgers University researchers clearly shows the economic ripples that are created by such a significant investment in the region’s energy infrastructure,” said Phil Beachem, President of the NJ Alliance For Action.

“Besides the clear environmental benefits of increased natural gas utilization, this project will offer an economic boost to the region by generating hundreds of millions of dollars in economic activity and supporting more than 3,000 good-paying jobs.”

Key findings from the analysis include:

  • In Pennsylvania, the design and construction of the project will generate $63.6 million in additional economic activity (GDP), including 499 direct and indirect jobs (1 year), $45.6 million in labor income and $3.9 million in local and state taxes.
  • In New Jersey, the design and construction of the project will generate $239.9 million in additional economic activity (GDP), including 2,411 direct and indirect jobs (1 year), $171.9 million in labor income and $16.4 million in local and state taxes.
  • In New York, the design and construction of the project will generate $23.7 million in additional economic activity (GDP), including 276 direct and indirect jobs (1 year), $16.6 million in labor income and $2.3 million in local and state taxes.

The Rutgers University study was commissioned by Williams, which operates the Transco pipeline and currently transports about 50 percent of the natural gas consumed in New Jersey and New York City.

Filed with the Federal Energy Regulatory Commission in March 2017, the Northeast Supply Enhancement project is a proposed expansion of the existing Transco pipeline to increase natural gas deliveries to National Grid – the largest distributor of natural gas in the northeastern U.S. – in time for the 2019/2020 winter heating season. Once complete, the project will help meet the growing natural gas demand in the Northeast, including the 1.8 million customers served by National Grid in Brooklyn, Queens, Staten Island and Long Island.

Williams is hoping to obtain all necessary regulatory approvals to start construction on the project in the summer of 2018.

To view the entire Rutgers University study, click here.

Posted in ,
blog comments powered by Disqus