Trump wants to revive a canceled pipeline that would carry natural gas from Pennsylvania’s shale gas fields to New York, indicating that it could cut energy prices in the Northeast by as much as 70%. The 124-mile Constitution Pipeline project was abandoned due to legal and regulatory challenges that made it economically unfeasible. The pipeline was proposed in 2013 at a projected cost under $700 million, but delays and legal challenges drove up the costs by nearly 40%. After the project received Federal Energy Regulatory Commission approval in 2014, New York regulators refused to issue water quality permits, citing concerns about danger to wetlands and stream crossings. New York State lawmakers have passed anti-gas laws and it has banned fracking in the state. The Constitution Pipeline project was scrapped in 2020.
The pipeline had four project partners. The principal partner was The Williams Cos., based in Tulsa, Oklahoma. Other partners are Duke Energy, Houston-based Cabot Oil and Gas, and Calgary, Alberta-based Alta Gas. Williams had a 41% stake and, in 2019, took a loss of $354 million for the project. The Williams Cos. indicated that its existing pipeline network and planned expansions are better investments than new projects like Constitution that are impacted by an uncertain regulatory framework.
Trump’s Announcement
President Trump asserted that “most of the permits — almost all of the permits” for the project are already in place. During a press conference, he said, “We are going to get this done, and once we start construction, we’re looking at anywhere from nine to 12 months, if you can believe it.” Limited pipeline capacity has hindered the Northeast’s access to natural gas.
President Trump did not indicate how the pipeline would be authorized or whether Williams Cos. would resume construction. Trump also raised the possibility of using eminent domain to secure land for the project, though he prefers to avoid that route.
New York Anti-Gas Policies
New York was the first state in the country to ban natural gas and other fossil fuels in most new buildings. The law bans gas-powered stoves, furnaces, and propane heating and encourages the use of other appliances, such as heat pumps and induction stoves, in most new residential buildings across the state. An induction stove — the most efficient electric range — costs about $1,000 and also requires the use of induction-capable cookware, which may mean additional expenses for purchasers. The law requires all-electric heating and cooking in new buildings shorter than seven stories by 2026 and for taller buildings by 2029. Sixty to 70% of N.Y. homes cook with natural gas. It also prohibits other gas-powered appliances in new residential buildings, such as water heaters and clothes dryers.
New York banned hydraulic fracturing technology in 2014 for oil and gas development. Despite having a section of the Marcellus shale basin in the state, New York produces less than 1%of the natural gas it consumes and imports the rest from outside its borders. New York’s ban on hydraulic fracturing cuts off about 12 million acres of the Marcellus Shale — an underground rock formation with natural gas reserves that have helped fuel an energy-production boom in Pennsylvania, West Virginia, and Ohio. Local communities in New York hoped to revive stagnating economies by producing natural gas from the Marcellus, but the state will not permit it. The stagnating economies would benefit from the investment, jobs, and royalties that would come from providing energy to lower natural gas prices for New York and neighboring states, perhaps leading to a rebirth of manufacturing as it has in Pennsylvania. To make matters worse for gas producers, New York lawmakers strengthened the ban on fracking by recently passing a bill that would block natural gas drilling companies from using an extraction method that involves injecting liquid carbon dioxide into the ground.
New York recently approved a controversial law that creates a climate superfund by taxing oil, natural gas, and coal companies $75 billion to fund climate projects, which will be added to the energy bills of New Yorkers. New York’s bill taxes energy companies that were the biggest emitters of greenhouse gases between 2000 and 2024, with a combined total of $3 billion annually for 25 years to fund projects politicians want under the guise of climate change mitigation. The companies are expected to begin putting money into the climate fund starting in 2028, giving state officials time to establish how to identify and notify responsible companies. The state must create rules on identifying responsible parties, inform companies of the fines, and make a system to determine which infrastructure projects will be paid for by the fund. The law’s impact will be significant, with annual fees levied on domestic and international energy producers.
On February 6, 2025, 22 states sued New York state in federal court, claiming the climate superfund unfairly harms businesses and people within their states and that the New York law was usurping federal authority under the Clean Air Act. Now, natural gas and electricity prices are spiking in New York state and Governor Hochul is reversing herself on some previous positions, including allowing for more gas to be produced and transported. For example, Hochul approved permits to expand the capacity of the 414-mile Iroquois pipeline and pump more natural gas into New York City and southern Connecticut to maintain adequate supply during cold spells and to avoid freezeouts.
Conclusion
The state of New York has constrained the supply of natural gas to the state by banning fracking and rejecting a pipeline transporting gas from Pennsylvania, causing gas prices in New York to be higher than they would be without those restrictions. President Trump, citing an energy emergency, plans to complete the Constitution pipeline, which would carry gas from Pennsylvania shale fields that were abandoned in 2020 due to legal challenges and the denial of a water quality permit by New York State. The impediments raised the cost of the 124-mile proposed pipeline by around 40%. Trump expects natural gas prices to be reduced by up to 70% when the pipeline is completed, which he expects in 9 to 12 months once construction starts. New York State legislators have passed a number of bills that are anti-gas, including banning natural gas from being used in most new buildings.
