Work to Begin on $1 Billion NESE Underwater Gas Pipeline Off Staten Island

Construction of the $1B NESE underwater pipeline near Staten Island is expected to begin this year, as the Williams-backed project advances plans to boost natural gas supply to the New York region.

(P&GJ) — Construction of an offshore natural gas pipeline near Staten Island is expected to begin later this year, advancing the long-debated Northeast Supply Enhancement (NESE) project, according to SILive.com.

The project, backed by Williams’ Transco pipeline system, is designed to increase natural gas deliveries to customers in Brooklyn, Queens and Long Island. Officials say the added capacity will support growing energy demand across the region.

Plans call for a roughly 17-mile underwater pipeline segment running through the Raritan Bay and Lower New York Bay. The broader project includes additional infrastructure upgrades in both New York and New Jersey and carries an estimated cost of about $1 billion.

State regulators previously rejected the proposal due to concerns over water quality and environmental impacts, including potential disturbance of contaminated sediments and marine habitats. However, the project was later approved after agencies determined that lessons from similar in-water construction projects could reduce those risks, according to SILive.com.

Developers now expect construction to begin in 2026, with completion targeted for late 2027. The pipeline is intended to complement existing infrastructure and improve access to natural gas supplies from Pennsylvania.

Supporters argue the project is needed to meet rising demand, including increased energy use tied to future development and data centers. However, environmental groups continue to oppose the pipeline and have filed a legal challenge, which is scheduled to be heard in federal court later this year.