For further inquiries, please contact: Richard Levitan, rll@levitan.com
BOSTON, Mass. (May 18, 2026) Today, Levitan & Associates, Inc. (LAI) announced results of its study, Everett Marine Terminal's Role in New England, concluding that the Everett Marine Terminal (EMT) is a critical, irreplaceable asset supporting natural gas and electric system reliability and resilience across Massachusetts and the New England region, particularly during extreme winter conditions.
"Our analysis indicates that EMT is a unique asset that delivers multiple reliability services exactly when New England needs them most, at moments of highest system stress," said Richard Levitan, President of LAI. "Winter Storm Fern demonstrated how quickly thin operating margins can tighten. In that context, retaining a near fully depreciated terminal can be a sensible, comparatively low-cost option versus building new infrastructure that may be difficult to permit and finance." He noted that EMT, like the Repsol Saint John LNG import facility in New Brunswick, provides valuable incremental supply in New England, which serves as an operational hedge when production constraints happen in the Marcellus and Utica production basins.
Using Winter Storm Fern as a real-world stress test, the study concluded that EMT provides unique, multifaceted services that help keep homes heated, support safe gas-system operations and reduce the region's reliance on oil-fired generation during extreme cold conditions. The study found EMT delivers three essential services that no single alternative can replicate: first, providing incremental natural gas supply during peak winter demand; second, delivering critical pressure support and intraday scheduling flexibility at constrained ends of major interstate pipelines and to the local National Grid distribution system; and, third, supplying liquefied natural gas (LNG) for truck delivery to dozens of satellite storage facilities serving local communities throughout New England.
"We welcome this independent study and the rigorous, fact-based analysis it provides," said Norris Wright, Vice President of Constellation's Gas, LNG and Low Carbon Origination. "Its findings confirm what Massachusetts and New England experience every winter: EMT is essential to regional energy reliability. Keeping EMT operating supports both the gas and electric grids during extreme cold, strengthens resilience, and helps keep energy reliable and affordable. Without EMT, New England would face higher risks of supply shortages, higher costs, and greater reliance on higher-emitting fuels during the coldest days of the year."
During Winter Storm Fern in early 2026, the region's coldest 21-day stretch since 2018, the interstate pipelines scheduled approximately 3.3 billion cubic feet of natural gas receipts from EMT. EMT also delivered gas directly into National Grid's local distribution system and supported significant LNG truck deliveries to utilities. These contributions helped maintain system stability, reduce reliance on oil-fired generation and prevent further strain on already limited regional fuel supplies.
The report also found that although other LNG facilities, including St. John LNG in Canada, play a valuable supply role, they cannot replace EMT due to key differences in location, operational flexibility and pipeline constraints, particularly during periods of peak demand. LAI performed a cost engineering analysis centered on replicating EMT's reliability contributions associated with vapor send out and pressure support during Winter Storm Fern and the subsequent cold snap through early February 2026. LAI estimated that replicating these reliability benefits through new pipeline infrastructure would cost approximately $2.1 billion in capital investment and between $4.6 billion and $6.1 billion in total fixed costs to ratepayers over a ten-year period. This ratepayer cost obligation is much higher than the fixed costs of continuing operations at the existing, largely depreciated facility in Everett. This cost estimate covers only the pipeline infrastructure needed to replicate EMT's role. It does not include the additional cost of replacing EMT's liquid send out services through other sources or expanded LDC storage capacity. LAI notes that incremental pipeline infrastructure may nevertheless offer additional benefits as part of a portfolio of resources to meet New England's future natural gas needs. However, adding new pipeline infrastructure as a replacement for EMT is not competitive on a fixed cost basis.
With New England facing ongoing uncertainty related to electrification timelines, offshore wind deployment and fuel supply constraints, the study concluded that maintaining EMT beyond 2030 represents a prudent and cost-effective approach to ensuring near- and mid-term energy resilience. Taking steps now to contract for continued EMT services post-2030 will support cost reductions and opportunities to spread fixed costs across a broader customer base.
EMT is the longest-operating LNG import facility of its kind in the United States. EMT connects to two interstate pipeline systems as well as a local gas utility's distribution system. EMT joined Constellation's generation's fleet on Oct. 1, 2018. Learn more here.
About Levitan & Associates, Inc.
Levitan & Associates, Inc. (LAI) is a Boston-based energy management consulting firm that provides advisory services to utilities, regulators, transmission developers, generation companies, and independent system operators. LAI also represents private equity investors on asset acquisition and project development. LAI focuses on solving complex financial, engineering, regulatory, and wholesale market design challenges through quantitative analysis. LAI's services include energy procurement strategy, asset valuation, resource adequacy assessments, market design, gas and electric resilience, risk management, and integrated resource planning centered on decarbonization. Founded in 1989, LAI combines expertise in economics, engineering, corporate finance, and public policy to help clients make informed decisions.
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