Core Insights - High winter electricity costs are prompting a significant policy shift in the Northeast, creating growth opportunities for natural gas transportation [2][9] - Regulatory changes are enabling the revival of canceled pipeline projects and expansion of existing infrastructure to meet rising demand [7][9] Infrastructure Challenges - The Northeast, especially New York and New England, has faced challenges due to insufficient natural gas infrastructure, leading to price volatility during winter [3][4] - The region's dependence on natural gas for heating and power exacerbates this volatility, with heating demand consuming nearly all available pipeline capacity [6] Price Trends - The U.S. natural gas benchmark Henry Hub recently closed above $5 for the first time since 2022, with Marcellus prices more than doubling from $2.87/MMBtu to $5.89/MMBtu between November 7 and December 8 [5] - Spot prices in New York surged from $3.04/MMBtu to $12.24/MMBtu, while New England prices rose from $3.57/MMBtu to $21.28/MMBtu during the same period [5] Regulatory Developments - Voter frustration over high electricity bills has led to a reconsideration of infrastructure needs, with state regulators clearing obstacles for projects like Williams' Northeast Supply Enhancement (NESE) [7][8] - Williams is also reviving the Constitution Pipeline, which aims to transport 650 million cubic feet per day (MMcf/d) of Marcellus supply [12] Project Details - The NESE project is set to add 400 MMcf/d of capacity and is targeting a 4Q27 in-service date [11] - Smaller expansions are also being pursued by Iroquois and Enbridge, with Iroquois planning a compression-only expansion to add 125 MMcf/d of capacity [14][15] Market Implications - The revival of natural gas infrastructure projects is expected to alleviate supply constraints and stabilize prices in the Northeast [9][17] - The recent acquisition of the Portland Natural Gas Transmission System for $1.14 billion highlights the value of existing infrastructure in the region [16]