National Grid announced that it will not accept any new natural gas customers in its New York City and Long Island service areas. Last week, New York Department of Environmental Conservation (DEC) denied Williams' application for water quality certification for the construction of their Northeast Supply Enhancement (NESE) pipeline.
National Grid said that until state regulators approve permits to William’s, all new natural gas hook-ups for the NYC and Long Island area will be halted. "While we continue to receive applications for new and expanded firm gas service ... none will be processed until the permits are received and (NESE) is allowed to proceed," National Grid said in a statement.
The pipeline was approved by the FERC on May 3, but the New York DEC, in denying the permit, said the project “fails to meet New York State’s rigorous water quality standards” and “would cause impacts to habitats due to the disturbance of shellfish beds and other benthic resources.”
The NESE would be a 400,000-Mmcfd, 24-mile sub-sea pipeline costing $1 billion that will extend from the New Jersey shore across Raritan Bay and interconnecting with Williams' existing Transco pipeline into New York.