The proposed 135-mile (217-km) Constitution natural gas pipeline could provide price relief and other economic benefits to the U.S. Northeast, generating up to $11.6 billion in energy savings and supporting nearly 2,000 jobs annually over 15 years, S&P Global said in an analysis released on Tuesday.
The analysis says the pipeline, which is owned by Williams Companies, could also add up to $4.4 billion in gross state product across Connecticut, Massachusetts, New York state and Rhode Island, and generate $432 million in federal and state tax revenues.
The proposal aims to ease persistent pipeline constraints in a region where winter gas prices can reach nearly three times the national average despite proximity to low-cost Appalachian gas reserves.
S&P Global said the pipeline could reduce local gas prices by up to 6% during peak demand months even in average weather years.
Improved delivery of gas and price stability could lower greenhouse gas emissions by encouraging the switch from heating oil to natural gas, which has 28% lower emissions intensity, the report added.
(Reporting by Anushree Mukherjee in Bengaluru; Editing by Paul Simao)