This report gives an overview of the PennEast Pipeline Co. v. New Jersey court case. In the U.S., there is a growing demand for natural gas. Since 2012, natural gas has added over 1 million new customers in the Northeast. In New York City and Long Island alone, roughly 8,000 customers are switching from oil to natural gas every year. To meet demand, new pipelines will need to be built. An analysis by the Interstate Natural Gas Association of America (INGAA) projected over 30 billion cubic feet per day (Bcf/d) of new pipeline capacity would be needed through 2025 to meet demand in the U.S.
However, in recent years the construction of new and expanded gas pipelines to meet this demand has been subject to increased scrutiny from states and federal actors due to concerns over their impact on climate change. For example, in July 2020, the $8 billion Atlantic Coast Pipeline was canceled due to delays and cost overruns stemming from ongoing legal and regulatory issues. Another pipeline, the Keystone XL Pipeline , was canceled in June 2021 due to the revocation of its presidential border crossing permit, which was revoked due to environmental concerns. Most recently, the U.S. Supreme Court looked at a case that weighed the rights of states to impose limits on pipeline construction by blocking eminent domain proceedings.