Study: Pipeline Construction Project Expected to Generate $327 Million Economic Impact
Williams Partners L.P. 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 – 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.
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 in Pennsylvania, New Jersey and New York. In addition, the project will directly and indirectly generate 3,186 jobs during the one-year 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, including 499 direct and indirect jobs during construction, $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, including 2,411 direct and indirect jobs during construction, $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, including 276 direct and indirect jobs during construction, $16.6 million in labor income and $2.3 million in local and state taxes.
- Once operational, the pipeline’s economic impact is projected to result in approximately $11.1 million in additional annual local property taxes paid by Williams to local municipal and county governments.
To view the complete economic impact analysis, visit www.northeastsupplyenhancement.com.
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