Amid Gov. Cuomo's threats, gas utility plans to truck shipments to New York
As an “arctic air mass” brings record cold temperatures across parts of the country, one gas utility company is ironing out details to ensure parts of the Northeast are not without heat this winter.
National Grid Plc is planning to transport liquefied natural gas (LNG) and compressed natural gas (CNG) to New York and New England by truck this winter so customers have gas to heat their homes, Reuters reported Tuesday.
Despite booming U.S. energy production, these measures are necessary in areas of the Northeast where some states – like New York – have resisted the construction of pipeline infrastructure, the publication noted. Production largely occurs in states far from New York and New England.
Meanwhile, New York’s Democratic Gov. Andrew Cuomo on Tuesday wrote a letter to National Grid, threatening to revoke the utility’s certificate to operate its downstate gas franchise unless it came up with a satisfactory plan to serve customers.
“National Grid has made clear that its only plan for future supply was based on a single, speculative project: construction of a private pipeline through New Jersey and New York,” Cuomo wrote.
A spokesperson for National Grid did not immediately return FOX Business’ request for comment.
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In May, New York state rejected a $1 billion natural gas pipeline from Pennsylvania to New York and New Jersey. National Grid then issued a moratorium saying it could not guarantee supply for all its potential customers.
Cuomo said that by issuing a moratorium, National Grid failed to meet its essential responsibilities as a utility. Among his suggested alternatives for the public utility were delivering gas by truck or barge. He gave the utility two weeks to come up with a plan to meet customers’ needs.
Some areas of the country were already experiencing early-season snow on Tuesday as an air mass that originated in Siberia made its way across the country.