Sorry, Trump Can't Save This Pipeline
- waterfallunityalli
- Apr 16
- 1 min read
The Constitution Pipeline has caught the eye of President Trump, who said in February that he wants to see it built in the Northeast. Sponsor Williams (WMB) is non-committal for now and may face questions in upcoming 1Q25 earnings. From our view, East Daley is hard-pressed to see a path forward for the defunct project.
Despite the positive spin, East Daley sees many challenges ahead. For one, several of the original project backers have changed hands, including Cabot Oil & Gas (now part of Coterra Energy (CTRA)) and Duke Energy, which sold its midstream assets to Enbridge (ENB). Williams may need to start from scratch finding customers if the new owners have lost interest.
Finding a downstream outlet for the supply is another obstacle. The figure above shows flows and capacity through Compressor Station 249 on TGP, downstream of where Constitution would deliver supply. Station 249 now operates at average throughput of 76% and runs 98% full at peak times. Similar data for the Brookfield segment of Iroquois Pipeline shows it is running at about 91% utilization now, and peak flows frequently exceed the stated segment capacity. These pipelines would need to coordinate additional expansions to efficiently route the additional gas to New England markets.
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