NY governor threatens to revoke National Grid’s gas franchise certificate

Gas supply issues in the city stem from rejected new pipeline proposal

The Governor of New York has demanded that British energy firm National Grid (NG) explain why the state should not revoke its certificate to operate its gas franchise following gas supply trouble in southern New York.

Andrew Cuomo stated that the utility had failed to provide an “adequate and reliable service” to his constituents, and gave it a fortnight to respond.

The National Grid’s ability to serve customers was hampered in May by regulators, who blocked plans for a pipeline in southern New York. Consequently the utility announced a moratorium on new gas customers in the New York City and Long Island.

The Northeast Supply Enhancement pipeline would have transported around 0.4 billion cubic feet of gas per day from Pennsylvania to New York, serving around 2.3 million homes. Revised plans are expected to be delivered for consultation in the near future.

Mr Cuomo stated that: “The plan to build such a pipeline was risky at best. The pipeline required multiple regulatory approvals in both states (New York and New Jersey), faced multiple potential legal challenges and construction hurdles.”

In response to the governors demands National Grid stated that it is: “in receipt of the letter ... and will review and respond accordingly within the timeframe outlined.” The company promised to “continue to work with all parties on these critical natural gas supply issues on behalf of all our customers in downstate New York.”

National Grid shares are down slightly in trading following the news, standing at £884.60 around noon, a fall of 0.32 per cent.

FURTHER READING: China’s Yantai Port Group to launch liquefied natural gas storage facilities by 2022

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