Pipeline that was to relieve Marcellus bottlenecks delayed by over a year

Gas pipeline
Source: DollarPhotoClub

Constitution natural gas pipeline, which is to relieve pipeline bottlenecks that have led to a supply glut in the Marcellus shale, will be delayed to the second half of 2017 as Williams Partners – the company behind the project – awaits permits and environmental approvals.

“Constitution anticipates beginning limited mainline construction in the summer of 2016,” the company wrote. “Full mainline construction would continue after October 1 to minimize and avoid adverse impacts to migratory birds and the Northern Long Eared Bat.”

Willams Partners await a water permit and a tree-clearing approval from the New York state, as well as approvals from the U.S. Army Corps of Engineers and the U.S. Federal Energy Regulatory Commission, the agency overseeing the review. Despite the setbacks the company is confident that the project will move forward soon.

“The project is under the jurisdiction of the federal government, and the federal government already approved it,” Williams spokesman Chris Stockton said last month.

The $875 million project – a partnership among Williams, Cabot Oil & Gas, Piedmont Natural Gas and WGL Holdings – will connect Marcellus Shale gas in Susquehanna County to consumer markets in New York and New England states.

On announcing the delay on March 10th, Tulsa-based Williams Cos., which controls and holds a majority stake in Williams Partners, fell 10 percent to $15.52 at at 1:22 p.m. in New York after touching 14.84. Williams Partners declined 2 percent to $18.71. Cabot rose 1.7 percent to $21.60 in New York. Piedmont and WGL Holdings were little changed.

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