TULSA, Okla.--(BUSINESS WIRE)--Williams Partners L.P. (NYSE: WPZ) today 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 (GDP) 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 (GDP), 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 (GDP), 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 (GDP), 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. The complete economic impact analysis is available at www.northeastsupplyenhancement.com.
The Rutgers University study was commissioned by Williams, which operates the Transco pipeline and currently transports about 50 percent of the natural gas consumed in New Jersey and New York City.
Filed with the Federal Energy Regulatory Commission in March 2017, the Northeast Supply Enhancement project is a proposed expansion of the existing Transco pipeline to increase natural gas deliveries to National Grid – the largest distributor of natural gas in the northeastern U.S. – in time for the 2019/2020 winter heating season. Once complete, the project will help meet the growing natural gas demand in the Northeast, including the 1.8 million customers served by National Grid in Brooklyn, Queens, Staten Island and Long Island.
The project has been designed to consist of approximately 10 miles of pipe in Pennsylvania, three miles of pipe in New Jersey, 23 miles of pipe offshore in New Jersey and New York state waters, a new compressor facility in New Jersey as well as additional horsepower at an existing Pennsylvania compressor facility.
About Williams Partners
Williams Partners (NYSE: WPZ) is an industry-leading, large-cap natural gas infrastructure master limited partnership with a strong growth outlook and major positions in key U.S. supply basins. Williams Partners has operations across the natural gas value chain from gathering, processing and interstate transportation of natural gas and natural gas liquids to petchem production of ethylene, propylene and other olefins. Williams Partners owns and operates more than 33,000 miles of pipelines system wide – including the nation’s largest volume and fastest growing pipeline – providing natural gas for clean-power generation, heating and industrial use. Williams Partners’ operations touch approximately 30 percent of U.S. natural gas. Tulsa, Okla.-based Williams (NYSE: WMB), a premier provider of large-scale U.S. natural gas infrastructure, owns approximately 74 percent of Williams Partners.
Portions of this document may constitute “forward-looking statements” as defined by federal law. Although the partnership believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Additional information about issues that could lead to material changes in performance is contained in the partnership’s annual and quarterly reports filed with the Securities and Exchange Commission.