Williams loses NESE rehearing bid over New Jersey water permit
The denial leaves the state water-quality certification vacated, while Williams' project page still targets service in late 2027.
Ines Halvorsen
An Oct. 22 court order denied rehearing for a 400,000-dekatherm-a-day gas expansion by The Williams Companies, Inc. NYSEWMB subsidiary Transco, leaving its New Jersey water-quality certification vacated. Williams' project page lists a fourth-quarter 2027 service target, while the order supplies neither a replacement date nor an additional construction-cost estimate.
The U.S. Court of Appeals for the Third Circuit denied both panel and full-court rehearing sought by Transcontinental Gas Pipe Line Company, LLC. The subsidiary sought review after the court's September decision vacated the state certification for the Northeast Supply Enhancement expansion, or NESE.
Williams shares closed at US$71.75, up 0.07 per cent, on the NYSE at 4 p.m. EDT on Oct. 26, according to NYSEWMB.
The court order contains no estimate of additional construction costs. Williams reported on Aug. 3 that companywide capital investments excluding acquisitions reached US$3.284 billion in the first half of 2026. That figure covers its wider business and does not identify NESE spending or costs arising from the permit litigation.
NESE would expand the existing Transco natural gas network through Pennsylvania, New Jersey and New York. Williams' project page, reviewed Oct. 26, describes the additional transportation capacity and lists a third-quarter 2026 construction-start target alongside the service target.
The court's action leaves Williams needing a valid New Jersey certification under the federal permitting framework. The order itself does not announce a delay to the company's service target or quantify construction spending deferred.
New Jersey Certification Returns To Regulators
The Sept. 8 opinion addressed the New Jersey water-quality certification for NESE. Its disposition granted the environmental groups' petitions, vacated the certification and remanded the case to NJDEP. The Oct. 22 order denied Transco's effort to obtain rehearing of that decision.
"For the reasons that follow, we will grant the petitions, vacate the Water Quality Certification, and remand to NJDEP for further proceedings," the court said in its Sept. 8 opinion.
The dispute concerns dredging beneath Raritan Bay, where construction would disturb sediment containing toxic contaminants. The court described a New Jersey scope that also includes a compressor station in Franklin Township and the onshore Madison Loop.
Williams' project page identifies the offshore New Jersey pipeline segment as six miles in state waters. The company's scope includes a new compressor station in Somerset County and a pipeline loop in Middlesex County. Pennsylvania work includes another pipeline loop and an electric motor-driven compressor at an existing station.
The court explained that federal approval requires additional state and federal authorizations required by law, including certification under Section 401 of the Clean Water Act. The Federal Energy Regulatory Commission approves interstate gas facilities, while NJDEP administers the state water-quality certification.
Mugglehead has also covered Williams' separate application for a Leidy gas expansion.
Read more: Williams seeks FERC approval for US$54.7M Leidy gas expansion
For NESE, the next regulatory step is further proceedings before NJDEP under the September remand; the Oct. 22 order sets no agency deadline. Williams' published service milestone remains the fourth quarter of 2027.
