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By Hugh Cameron
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Donald Trump claims that Americans could see significant savings if New York leaders drop their opposition to an abandoned pipeline intended to serve the northeastern region.
On Thursday, the president said that the Constitution Natural Gas Pipeline project, halted in 2020 after years of opposition, could save families in New York, Connecticut and New England up to $5,000 on their utility bills.
Newsweek has previously reached out to the White House and New York Governor Kathy Hochul's office via email for comment about the pipeline.
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Why It Matters
Concerns are mounting that Trump's tariffs on Canada—and any retaliatory measures by Canadian officials—could lead to an energy crisis, with state leaders warning that these will result in higher electricity and heating costs.
However, President Trump has claimed, both on the campaign trail and in office, that the key to lowering energy prices for Americans—an increasing cause for concern in the U.S.—lies in "unleashing" the country's natural resources.
What To Know
The Constitution Pipeline is a proposed 124-mile natural gas pipeline designed to transport up to 0.65 billion cubic feet per day from Pennsylvania's drilling fields to New York and areas of New England.
Since its inception in 2013, the project has encountered multiple setbacks, primarily due to environmental opposition from New York state officials.
As a result of these regulatory challenges, by early 2020, multiple partners had abandoned the project, the future of which remains in limbo.
While Trump is eager to give the greenlight, the pipeline's developers will not do so without the support of state leaders, Williams Companies CEO Alan Armstrong told Barron's.
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On February 14, while signing an executive order establishing the National Energy Dominance Council, Trump told reporters that the pipeline would "greatly reduce energy prices in New York and all of New England by 50 percent, 60 percent or 70 percent," but that New York had held up the project.
"We'll consider using eminent domain in New York if necessary," the president said, referencing the federal government's authority to seize land for public use. "But hopefully, we won't have to."
On Monday, Ontario Premier Doug Ford announced a 25 percent surcharge on energy exports from his province to the U.S., in response to Trump's tariffs on Canadian imports.
In response, the president warned that this could trigger a "national emergency on electricity" in Minnesota, New York, and Michigan, and announced he would double tariffs on Canadian metal imports, although this action was later reversed.
Ford has now pressed pause on the surcharge. On X, the Ontario Premier said that U.S. Commerce Secretary Howard Lutnick had "extended an olive branch to start a conversation about the future of the United States-Mexico-Canada Agreement," the 2018 free trade deal between the three countries which was the successor to NAFTA.
Speaking to reporters on Thursday, Ford said that he and Lutnick had spoken, that the meeting had gone "very well," and that as a result, "we feel that the temperature is being lowered."
What People Are Saying
President Trump, via Truth Social on Thursday: "If New York, Connecticut, and New England had their Pipelines, savings from Heating alone would go down $2,300 per family — When you add Air Conditioning, and other things, you would have a $5,000 savings per family. All we need is a simple approval from New York. Every other State in New England, plus Connecticut, wants this, in order to help the Environment, and save BIG money. We only need the final approval from New York State, whose people all want it. Otherwise, we'll have to use other authorities. New York State has held up this project for many years, but we won't let that happen any longer. We will use federal approval!"
In January, the North American Electric Reliability Corp said: "Natural gas dependency in New England and New York poses a high risk for electric reliability during extreme winter weather under certain circumstances."
Citing a study by the Northeast Power Coordinating Council, the non-profit said: "The natural gas system is fully or near fully utilized during extreme conditions and reveals that certain contingencies, such as pipeline disruptions and protracted extreme weather, pose severe threats to reliability."
In response to Ontario's proposed surcharges, the New York Independent System Operator, which manages the state's electric grid, said: "The NYISO is analyzing the impacts of the order by the Ontario Premier and working closely with the Independent Electricity Operator of Ontario to ensure a reliable grid and stable flows of electricity across interregional transmission lines. The NYISO expects to have adequate reserves to meet reliability criteria and forecasted demand for New York."
In response to Trump's tariffs and the subsequent Canadian response, New York Governor Kathy Hochul said: "These federal tariffs have been poorly conceived from the start: crafted in secret with no transparency and no clear economic rationale, they've only served to destabilize our capital markets and create uncertainty among New York families and businesses."
What Happens Next?
Trump and Hochul are set to meet at the White House on Friday morning to discuss the future of the pipeline. One source told The Hill that the pair will also discuss congestion pricing in New York, recently halted by the president.
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