Construction on New York’s Empire Wind 1 offshore wind project has resumed following a deal that may also revive long-stalled natural gas pipeline initiatives in the state. The agreement, which appears to have been brokered behind the scenes with international and federal involvement, links two major energy priorities—offshore wind and expanded natural gas access.

The development follows discussions between Governor Kathy Hochul and President Donald Trump, who reportedly reached an understanding that would support both offshore wind development and natural gas infrastructure in the region. While Hochul denies any formal deal, she acknowledged that new pipelines would be approved only if they adhere to environmental and regulatory standards.

“Hochul says there was no deal to do so, she indicated that she will approve the gas pipelines only if they meet federal and state requirements.”

According to reports, Norway’s finance minister Jens Stoltenberg and U.S. Interior Secretary Doug Burgum helped finalize the arrangement, which allowed the Empire Wind 1 project to resume after it was paused over permitting concerns by the Biden administration.

“This is an agreement about natural gas and wind made in the United States,” Stoltenberg told reporters.

“Energy Dominance is the foundation of America’s economic and national security. I am encouraged by Governor Hochul’s comments about her willingness to move forward on critical pipeline capacity,” Burgum said on X. “Americans who live in New York and New England would see significant economic benefits and lower utility costs from increased access to reliable, affordable, clean American natural gas.”

Costly Offshore Wind Meets Political Headwinds

Empire Wind 1, being built by Norwegian energy company Equinor, has a planned capacity of 810 megawatts and is expected to begin delivering power by 2027. Located roughly 20 miles off Long Island, the project is part of New York’s broader transition away from fossil fuels. However, its high price tag has made it controversial.

“The cost of power from Empire 1 is expected to be three times the cost of natural gas generation.”

After construction was temporarily halted due to alleged flaws in its federal approval process, the month-long pause was costing Equinor up to $50 million per week, with 11 vessels idling offshore. The company’s CEO, Anders Opedal, even visited the White House to advocate for the project.

“Empire Wind sought renegotiation of its contracts, settling for a fee of $150.15 per megawatt-hour, which is about three times the price of natural gas-fired generation.”

Natural Gas Pipelines Back in Play

Trump, who has repeatedly emphasized energy affordability, wants to resurrect canceled natural gas pipeline projects to ease pressure on heating and electricity prices in New York and New England. His administration has focused on reviving the Constitution Pipeline, originally proposed in 2013 and scrapped in 2020 due to environmental and legal obstacles.

“President Trump believes that natural gas prices are too high for New Yorkers and New Englanders and wants to provide relief by increasing the availability of supplies through pipeline construction.”

“He wants to revive a canceled pipeline that would carry natural gas from Pennsylvania’s shale gas fields to New York, indicating that it could cut energy prices in the Northeast by as much as 70%.”

The Williams Company, which originally sponsored the Constitution Pipeline and the Northeast Supply Enhancement (NESE) project, announced plans on May 29 to revive both efforts, representing an estimated $2 billion investment.

“Williams has asked the Federal Energy Regulatory Commission to reinstate the federal permit for the Northeast Supply Enhancement Project, a 23-mile underwater segment from New Jersey to New York City that would run parallel to its existing Transco pipeline and then connect to it.”

The original Constitution Pipeline was derailed largely due to New York's refusal to grant water quality permits. State officials cited risks to wetlands and streams, while environmental groups and lawmakers have pushed for anti-gas legislation, including a ban on fracking despite the state’s proximity to the Marcellus Shale’s vast reserves.

Offshore Wind Landscape Still Uncertain

Although Empire Wind 1 is back on track, the broader future of offshore wind in the U.S. remains uncertain. Inflation, rising capital costs, and supply chain bottlenecks have hindered the industry nationwide. Other large projects under construction include Revolution Wind, Sunrise Wind, and Coastal Virginia Offshore Wind, the latter of which is now 55% complete and set to go online by early 2026.

Still, experts caution that offshore wind’s costs remain well above market rates, and without significant government support, its scalability is limited.

“While Empire 1 is allowed to continue construction, it is not necessarily an omen for more offshore wind projects… Its costs are incredibly high for U.S. consumers.”

With nuclear and fossil fuel plants shuttered, New York’s grid is increasingly reliant on renewable sources. Hochul and state leaders continue to back offshore wind despite the cost burden, hoping projects like Empire Wind 1 will help close the gap.

“Hochul highlighted some 1,500 union jobs that would be affected.”

Originally reported by IER.