National Grid sees less permitting risk in its effort to increase truck and trailer delivery of compressed natural gas. With a FERC decision unlikely before the second quarter, the project may not be operational until winter 2024-2025, the company said. National Grid also expects that pipeline company Iroquois Gas Transmission System LP may fail to swiftly obtain Federal Energy Regulatory Commission approval and subsequent state and local permits to add 125,000 Dth/d of compression to its existing network. However, the operator's outlook has changed since its last update in August 2021: It now sees a high likelihood that the state's Department of Environmental Conservation will not issue the permit by February. The company said it could still complete the project for the 2023-2024 heating season if it receives all outstanding permits by February. Despite filing for permits in 2020, National Grid is still waiting on permits to add two liquefied natural gas vaporizers at its Greenpoint Energy Center in Brooklyn. Permitting uncertainty and regulatory risks present the greatest challenges to completing the infrastructure enhancements, National Grid said. Ultimately, National Grid settled on a two-track approach to deal with its supply constraints: enhancing existing gas infrastructure and managing demand. The project, known as the Northeast Supply Enhancement project, would be capable of delivering 400,000 Dth/day of gas into New York City and Long Island.Ī disagreement over the project led to a 2019 moratorium on gas hookups and subsequent settlement between New York and National Grid, which distributes gas in Brooklyn, Queens, Staten Island and Long Island through Brooklyn Union Gas Co. The issues in part stem from a previous New York State Department of Environmental Conservation decision refusing to issue a critical permit for National Grid's preferred option for increasing supply: an expansion of the Transcontinental Gas Pipe Line Co. Additionally, inflation, supply chain problems, and inadequate market resources are placing massively ambitious demand-side management efforts in jeopardy, the company said in a Dec. The National Grid PLC subsidiary said there is a high likelihood that federal and state permits will not be issued in time to start construction on critical gas capacity programs and avoid a supply-demand imbalance by winter 2023-2024. Source: Alex Potemkin / E+ via Getty ImagesĪnother moratorium on downstate New York natural gas hookups may be in store as National Grid USA scrambles to implement its long-term supply plan, the company warned. ![]() National Grid's problems securing permits to enhance infrastructure at its Greenpoint Energy Center in Brooklyn exemplify the challenges it has faced in meeting future energy demand.
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