New York's utility regulator told some US units of UK energy firm National Grid on Thursday to report on how they will optimize natural gas supply sources if the proposed Northeast Supply Enhancement or NESE pipeline project is or is not placed into service.
If NESE, proposed by US energy company Williams Cos Transco unit to increase gas supplies from Pennsylvania into New Jersey and New York, is not placed into service, the New York Public Service Commission (NYPSC) said it wanted the National Grid companies to report on how they will address reliability concerns.
The three National Grid utilities - Brooklyn Union Gas, KeySpan Gas East and Niagara Mohawk Power - serve about 2.5 million gas customers in New York, making them the state's largest natural gas delivery system, the NYPSC said.
Williams canceled its first attempt to build NESE in 2024 largely due to opposition from New York and New Jersey environmental regulators. It revisited the project earlier this year with support from US President Donald Trump's administration.
NESE and another proposed gas pipe proposed by Williams, the Constitution Pipeline from New York to Pennsylvania, have been linked to a deal between the Trump administration and New York Governor Kathy Hochul to lift a federal stop-work order on construction of Norwegian energy company Equinor's Empire Wind offshore wind project off New York.
While Hochul did not specifically endorse any gas pipes, she did say New York would work with the US administration and private entities on projects that meet legal requirements under state law.
(Reporting by Scott DiSavino; Editing by Richard Chang)