New England Contracting Twists Expected; EPD & KMI Offense; Waha Positive Again

Research evidence excerpt

New England Contracting Twists Expected; EPD & KMI Offense; Waha Positive Again

USA | Midstream & Utilities EquityJuneResearch25, 2026

New England Contracting Twists Expected; EPD

& KMI Offense; Waha Positive Again

Project Beacon's viability remains a debate. While MA appears desirous for

more gas capacity, NEPGA has cited the mismatch between the costs of and

compensation for new gas FT. Federal backstop may be required to bridge the

gap between reliability objectives and project risks. That said, ENB mgmt was

quite open and positive on Beacon at a lunch we attended yesterday. EPD/KMI

meetings last week bullish on NGLs/nat gas pipes. Waha positive for 2nd week

in a row.

Project Beacon highlights the persistent issue for NE FIDs, namely difficulty in contracting.

Recent back and forth between Massachusetts Energy Secretary Rebecca Tepper and the New

England Power Generators Association (NEPGA) highlights the ongoing challenges of building out

of new gas capacity into New England. Notably, NEPGA estimated Project Beacon firm costs at

~$90k/MW-year versus only ~$16k/MW-year of winter capacity value currently contemplated by

ISO-NE reforms.

While MA's Energy Sec writing a letter to local IPPs encouraging them to participate in Beacon is a

very positive shift from prior stance toward pipeline expansions, the pushback from the IPPs is notable.

Need Massachusetts enabling legislation to have electric utilities engage in offtake of a gas pipeline

but not likely in current environment, making federal action as a backstop of sorts a likely next step.

Presentations by admin next week in New England could cement this direction. See unconventional

approach as administration keen to put up wins around regional affordability. Don't see Mass & other New