WMB · 10-Q · 2026Q3 · Full report

Regulatory Approval and Project Risk

WILLIAMS COMPANIES, INC. · 2026-11-02 · Importance 53 · Surprise 60 · In source text

The Third Circuit Court of Appeals on September 8, 2026, granted petitions for review of the New Jersey Department of Environmental Protection’s Clean Water Act water-quality certification for Transco’s Northeast Supply Enhancement project, vacating the certification and remanding it to NJDEP. The project is designed to add 400 Mdth/d of capacity from Pennsylvania to New York and was planned for service as early as the fourth quarter of 2027, subject to necessary approvals. Transco has agreements with customers subscribing to all project capacity, but the court action creates a permitting and schedule risk. Separately, Transco received FERC approval in January 2026 for Southeast Supply Enhancement, planned to add 1,597 Mdth/d by as early as the third quarter of 2027, subject to approvals.

Key facts

• On September 8, 2026, the Third Circuit vacated the New Jersey water-quality certification for Northeast Supply Enhancement and remanded the matter to NJDEP for appropriate action.
• In September 2026, Williams settled one Pennsylvania royalty case and said the remaining matter was not significant; Williams continued to believe the remaining claim was subject to Chesapeake indemnification.
• Williams’ Transco rate-case settlement was approved by FERC on December 30, 2025, became effective March 1, 2026, and resulted in a net refund in April 2026.
• Transco paid the settlement of Atlantic Sunrise construction litigation on April 14, 2026, and recovered an unspecified amount from the project co-owner in May 2026.
• Transco’s general rate case settlement was approved by FERC on December 30, 2025, became effective March 1, 2026, and refunds were paid in April 2026.
• Completion of Louisiana LNG facilities is expected to require additional subordinated financial support from equity holders in the form of capital contributions.
• Completion of the Driftwood Pipeline will require additional subordinated financial support from equity holders through capital contributions.
• At September 30, 2026, six NWP meter stations remained under evaluation and four compressor stations remained under remediation following prior assessments.

Impact estimates