North Lacey natural gas project
Project updates
We are currently in the design phase of this project and we’re working with local agencies to get the required permits. Construction and restoration for this project is expected to occur in early 2027. The project will cause temporary street detours, as well as closures to the Karen Fraser Woodland Trail and Chehalis Western Trail. It's our goal to minimize construction impacts as much as possible, and we will share details before construction begins.
Project overview
Puget Sound Energy (PSE) is investing in an important infrastructure project to ensure continued, safe, and reliable natural gas service in the North Lacey community.
Why this project is needed
The North Lacey area, serving approximately 20,000 PSE natural gas customers, faces significant reliability challenges. The natural gas system in this area is running out of capacity to deliver enough natural gas during the coldest days of the year.
Over the past 20 years, more homes and businesses have been built in the area. The increased growth in customer demand is now exceeding what the region’s natural gas system can reliably supply. At this time, we need to update the system to prevent temporary disruptions to natural gas service and heat during cold weather when demand is highest.
What we're building
PSE will install approximately 1.5 miles of new natural gas pipe under portions of two trail corridors in Lacey – the Karen Fraser Woodland Trail and Chehalis Western Trail. We worked closely with the City of Lacey to identify the most appropriate routing for the new pipe and together determined that placement along existing trail corridors would minimize impacts to roads and community operations, while serving community infrastructure needs.
This upgrade will bring additional natural gas capacity to the North Lacey area and make the system stronger for the entire community.
This project will provide significant benefits to the North Lacey community:
- Ensures continued, safe, and reliable natural gas service for heating and other needs, even during the coldest days of winter.
- Avoids service interruptions or outages during times of high demand when customers rely on us to heat their homes and cook their meals.
- Provides a long-term solution that will serve the community for decades.
- Creates a stronger, more resilient natural gas system for the entire region, resulting in increased reliability for customers.
Process and timeline
Throughout the duration of this project, we are committed to keeping affected property owners and the community informed of our progress, opportunities to engage, and potential impacts.
This schedule could change depending on the permitting and construction progress. Check back for project updates or contact us with questions.

