Constitution Pipeline Could Generate Up to $11.6 Billion in Total Savings by Lowering Natural Gas Prices in 'Energy Tight' US Northeast, S&P Global Analysis Finds

Core Insights - The proposed Constitution natural gas pipeline could generate up to $11.6 billion in energy savings for consumers and support nearly 2,000 jobs annually over a 15-year period [1][8] - The pipeline is expected to stimulate up to $4.4 billion in additional gross state product across Connecticut, Massachusetts, New York, and Rhode Island, along with generating $432 million in federal and state tax revenues [2][8] Economic Impact - The construction of the 135-mile pipeline could alleviate persistent pipeline constraints in the Northeast, where winter gas prices are nearly three times the national average [3] - The pipeline could reduce local gas prices by up to 6% during peak demand months, providing consistent savings throughout the project's lifespan [4][8] Market Dynamics - The region experiences extreme winter price spikes due to overwhelming demand and limited pipeline capacity, with prices soaring to as much as 36 times the annual average on peak days [5] - The analysis indicates that without additional pipeline capacity, severe market dislocations and seasonal price spikes will continue, even with increased renewable energy sources [5][6] Environmental Considerations - Improved gas supply and price stability from the pipeline could lower greenhouse gas emissions by facilitating a shift from heating oil to natural gas, which has a 28% lower emissions intensity [6] Summary of Key Findings - The Constitution Pipeline is projected to provide up to $11.6 billion in energy savings, with $8.5 billion net savings after service costs, and support nearly 2,000 jobs annually [8] - The total revenue for businesses across the four states could reach up to $8.5 billion [8]