Project Beacon Targets New England’s Persistent Gas Flow Constraints

Enbridge recently announced a binding open season for the Algonquin Gas Transmission (AGT) pipeline beginning May 18 and lasting until July 1, calling for bids on the potential 300-MMcf/d Project Beacon expansion. Planned for east of the Ramapo receipt area in Rockland, NY, Project Beacon is aimed at addressing persistent bottlenecks on AGT, where receipts enter the western part of the system and attempt to move east toward Boston. Enbridge’s goal with Project Beacon is for the expansion to help to provide operational flexibility and relieve high utilizations, especially during daily peak demand periods. In turn, this could help stabilize prices and reduce the risk of basis blowouts, particularly during the winter months. If the project moves forward, Enbridge expects an in-service date around November 2030.

Rising New England Power Demand

Power demand in New England is expected to rise, largely driven by forecast growth in heating and transportation electrification. ISO-NE forecasts heating electrification to add approximately 1,600 MW of incremental winter peak load by the 2030/’31 winter season, while transportation electrification is expected to add another 473 MW over the same period. The region has also seen a decline in net imports, meaning more in-region generation may be needed to meet rising load. More generation in ISO-NE can increase gas-fired power burn and put more pressure on regional gas-pipeline deliverability during peak periods, like during the winter. Under those conditions, some dual-fuel units in ISO-NE may switch to petroleum products to meet demand. Despite this relief, substantial load growth can still put upward pressure on gas prices. Project Beacon could help address current congestion while providing added deliverability support as this demand materializes.

AGT demand deliveries also show growing pressure, with power burn increasing notably over the last couple of years and contributing to higher total demand on the system. Because most Local Distribution Companies (LDCs) and power-sector deliveries are located on the eastern end of AGT, system reliability depends on the pipeline’s ability to move gas from western receipt points toward downstream demand centers, especially during winter peaks.

Stony Point as a Congestion Signal

Stony Point Compressor Station in Rockland County, New York, is one of the key points to watch along AGT due to it being highly utilized, especially during peak winter months, and because it provides meaningful flow volumes and sufficient historical data to evaluate utilization trends. With Stony Point located just east of several major western receipt points, including Ramapo, its flow data has shown consistently tight utilization as western receipt gas attempts to move east across AGT. During the 2025/2026 winter, scheduled volumes frequently ran in the upper 90% of posted operating capacity, reflecting sustained cold-weather demand across much of the season. Winter Storm Fern and several cold stretches in the following months further tightened utilization.

These periods of high utilization at Stony Point also correspond to basis blowouts at Algonquin Citygate. In February 2026, utilization at Stony Point averaged 94%, while Algonquin Citygate basis averaged $11.06/MMBtu for the month. A similar pattern was observed in February 2025, with Algonquin Citygate basis averaging $10.53/MMBtu and Stony Point utilization averaging 93%. This lines up with the higher demand deliveries discussed earlier, as colder winter periods over the last two years have contributed to stronger peak-season demand, while the two-year moving average has also trended slightly higher. Together, these periods show how limited west-to-east flexibility on AGT can translate into elevated downstream price risk when winter demand strengthens.

Going forward

If Project Beacon moves forward, the additional 300 MMcf/d of eastbound capacity could help reduce New England gas price volatility while also preparing the region for further demand growth mainly from electrification-driven power burn. The added capacity would also allow more gas supply to move reliably toward delivery points along the eastern parts of AGT. However, Project Beacon has not been officially approved, as the open season is scheduled to end July 1, which will help determine whether there is enough shipper interest to support the expansion. After that, there are still several hurdles before Project Beacon can advance, including regulatory approval.

Check back in for more Energy Market Insights as we continue our coverage of Project Beacon and other developing projects.

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