Construction on a controversial underwater natural gas pipeline off the coast of Staten Island is expected to begin by the end of 2026, marking a pivotal shift in New York’s energy infrastructure following years of regulatory and political deadlock.

The $1 billion Northeast Supply Enhancement (NESE) project, spearheaded by Oklahoma-based Williams Partners subsidiary Transco, aims to bolster natural gas delivery to National Grid customers in Brooklyn, Queens, and Long Island. 

The project features a 17.4-mile underwater segment stretching through the Raritan and Lower New York bays.

While the New York Department of Environmental Conservation (DEC) denied the project as recently as 2020 due to concerns over mercury and copper sediment displacement, the agency issued a permit approval this November. 

Officials cited “considerable in-water utility construction” experience gained since the initial denial as justification for the reversal, with shifting political and economic landscapes. 

While the project stalled under the Biden administration, it regained momentum following the return of President Donald Trump, who has championed local fossil fuel infrastructure. 

State officials and National Grid representatives also pointed to surging energy demands, driven largely by the development of artificial intelligence data centers, including a planned facility on eastern Long Island.

“Energy security is national security,” said Chad Zamarin, President and CEO of Williams, during an April ceremonial ground-breaking in Brooklyn. “NESE delivers reliable American energy to New York’s grid at a critical time.”

However, the project faces a significant hurdle. A coalition of environmental groups, including the Staten Island-based Protectors of Pine Oak Woods, filed a federal lawsuit in November. 

The groups allege the state acted illegally by approving a project it previously deemed a threat to marine habitats.

If the project survives the legal challenge—with arguments scheduled for June 18 before the U.S. Court of Appeals—National Grid customers can expect to see a 3.5% increase in their utility bills to fund the installation. 

Williams Partners expects the pipeline to be fully operational by the fourth quarter of 2027.