The Trump administration has lifted an April 16 stop-work order for ongoing construction of the estimated $5-billion Empire Wind offshore wind project off New York, according to a May 20 announcement by its Norwegian developer, Equinor ASA. 

“Construction can now resume …which underscores our commitment to deliver energy while supporting local economies and creating jobs,” firm CEO Anders Opedal said. With the project fully permitted and work 30% complete, he had previously described the shutdown—which the government claimed was needed because of rushed environmental review in the Biden administration—as “unlawful” and “unprecedented” and had weighed a lawsuit against the current administration. 

Equinor had said the shutdown could have prompted it to cancel the project, which already had about 1,500 construction workers on site. Another 1,000 would have been added for offshore construction.

The shutdown prompted strong pushback from building trades, government leaders, regional politicians and even top officials in Norway.

The U.S. Interior Dept. did not post details of the reversal on its website, but Interior Secretary Doug Burgum said on social media it is linked to an agreement with New York. Gov. Kathy Hochul (D) that could result in work resuming on one regional gas pipeline she halted in 2020, with other projects eyed. 

Pipeline builder Williams Cos. dropped its plan in 2020 for the $1-billion Transco gas pipeline from Pennsylvania to the NY-NJ region after battles with both states’ officials, while other developer proposals also faced opposition and court battles.

According to Newsday, Hochul and President Donald Trump had been in phone conversations since the shutdown, “and in a series of late-night weekend calls, Trump was persuaded to change his mind to save union jobs.” 

In a statement, Hochul thanked Trump for his willingness to work with me “to save the … 1,500 union jobs that were on the line.” But related to potential gas projects, she also “reaffirmed that New York will work with the Administration and private entities on new energy projects that meet the legal requirements under New York law.”

Burgum said he was “encouraged by Governor Hochul’s comments about her willingness to move forward on critical pipeline capacity.”

Skanska is lead contractor for the 810-MW wind project’s Brooklyn, N.Y., onshore staging site, with offshore work to install foundations for 54 turbines set to begin this summer, said a project spokesman. “We started rock laying in April,” he said.

Equinor, which said it has spent about $2.5 billion on the project so far, will offer an update on the financial impacts of the shutdown in its second-quarter results conference call on July 23. 

An Equinor spokesman said the shutdown was costing the developer about $50 million per week.