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Williams Seeks to Resurrect Canceled Key Gas Pipeline Projects

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The Williams Companies, Inc. (WMB - Free Report) recently stated that it is working with federal and state regulatory agencies to revive two of its pipeline projects that were previously canceled due to environmental reasons. These natural gas pipeline projects include the Northeast Supply Enhancement (NESE), running from Pennsylvania to New Jersey and New York, and the Constitution Pipeline, which again links Pennsylvania to New York.

WMB mentioned that these projects were cancelled after years of fighting over necessary regulatory permits. The Constitution Pipeline project was halted in 2020 after several years of battling for permits from New York regulators, while the NESE project was canceled in 2024 after fighting for permits from regulators in both New York and New Jersey.

Navigating the Regulatory Landscape

After the Trump administration began to show support for natural gas projects in the United States, Williams decided to reinstate these projects. A Williams spokesperson has mentioned that the company has written to the Federal Energy Regulatory Commission to reinstate the certificate of public convenience and necessity so that it can restart its NESE pipeline project. This certificate is necessary for the construction and operation of interstate pipelines.

Williams is also engaged in discussions with environmental regulators in New Jersey, Pennsylvania and New York for the reinstatement of the pipeline projects. Meanwhile, the company stated that it will be filing the necessary applications with the environmental agencies to secure permits that will enable it to move ahead with the NESE and Constitution pipelines. Per Williams, these pipeline projects are necessary to mitigate long-standing issues in natural gas supply in the Northeast. According to the company, these constraints in supply lead to higher energy costs for the consumer and greater demand for fuels having higher emissions.

Shifting Political Winds

The decision to reinstate these projects follows the Trump administration’s withdrawal of the stop-work order on Equinor’s Empire Wind project offshore New York. When the Trump administration revoked the order, it engaged in extensive discussions with New York Governor Kathy Hochul. Part of these discussions included the governor agreeing to let new gas pipeline capacity come online. While the governor has not endorsed any new pipelines, she has said that New York is willing to cooperate with President Trump on new energy projects that adhere to the state laws.

WMB’s Zacks Rank & Key Picks

WMB currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Flotek Industries Inc. (FTK - Free Report) , Energy Transfer (ET - Free Report) and RPC, Inc. (RES - Free Report) . While Flotek Industries sports a Zacks Rank #1 (Strong Buy) at present, Energy Transfer and RPC carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Flotek Industries specializes in green chemistry, which provides innovative solutions aimed at reducing the environmental impact of the energy industry. Flotek develops specialty chemicals tailored for both domestic and international energy producers, as well as oilfield service companies. These chemicals not only help reduce the environmental impact of hydrocarbon production but also lower operational costs.

Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 130,000 miles, its network spans more than 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.

RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to its shareholders through consistent dividend payments and share buybacks, making it an attractive choice for investors seeking steady returns.

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