The Trump administration has reversed itself and is now allowing oil giant Equinor’s under-construction $5bn Empire Wind 1 project to proceed off New York apparently in return for a deal involving gas pipelines.

A stop-work order for the wind project announced by Interior Secretary Doug Burgum on April 17 had sent jitters throughout the US offshore wind sector. Work on the Empire Wind 1 was 30% completed.

The halt of more than a month was costing Norway-based Equinor up to $50mn per week and with 11 vessels on standby, the company had said.

Interior Secretary Burgum had said the project permitting was rushed by the previous Democratic administration of Joe Biden.

"We appreciate the fact that construction can now resume on Empire Wind, a project which underscores our commitment to deliver energy while supporting local economies and creating jobs," said Anders Opedal, president and CEO of Equinor, after a deal was struck on May 19.

It in fact appears that there may have been a deal with Democrat New York politicians and the administration of the anti-wind Donald Trump, a Republican, to allow more natural gas pipeline capacity in the state in return for Empire Wind construction resuming. The powerful New York politicians included Governor Kathy Hochul and Senate minority leader Chuck Schumer.

The alleged deal was not explicitly mentioned by US officials but in Oslo, Reuters reported that Norwegian Finance Minister Jens Stoltenberg, a former head of NATO who had intervened in the case, told reporters: “This is an agreement about natural gas and wind made in the United States.”

Burgum, while not linking natural gas and Empire, had posted on X:

“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. 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.”

New York has tended to oppose new natural gas pipelines, but is short of transmission for energy. Empire will be the first major offshore wind project to deliver power directly to New York City.

Equinor had threatened to sue the Trump administration and had earlier this month said it was “days away” from abandoning the project. Equinor is a significant force in US energy, especially in natural gas and oil in the Gulf of Mexico.

“After more than a month of uncertainty, America is back on track with an Above All Energy approach – one that puts thousands of skilled workers back on the job, reignites construction in our nation’s shipyards, and sends mariners back to sea,” said Liz Burdock, Oceantic Network’s president and CEO of the lifting of the stop-work order.  “America is moving forward. Let’s get to work.” 

“Fully permitted projects must have policy consistency and certainty to deliver the infrastructure required to meet America’s growing electricity demand,” added Jason Grumet, CEO of the American Clean Power Association.

“The restoration of Empire Wind 1 secures jobs for more than 1,500 construction workers, drives economic development, and advances one of the largest energy infrastructure undertakings in the past 50 years to deliver reliable, locally produced energy to New Yorkers,” said Doreen Harris, New York State Energy Research and Development Authority (NYSERDA).

“Offshore wind remains a once-in-a-generation opportunity to power our future and a vital part of New York’s resilient and diverse energy portfolio,” she said. 

The planned online date of the project is still 2027, said Equinor. The company also said it will assess the financial impact of the stop-work order in its second quarter earnings.