The Northeast Energy Direct gas pipeline project is a combination of TGP's proposed Pennsylvania to Wright, NY (133 miles) and Wright, NY, to Dracut, MA, project, which would result in the construction of approximately 53 miles of pipeline co-located with TGP's existing system and an existing utility corridor in New York, 64 miles of pipeline in Massachusetts and approximately 71 miles of pipeline in New Hampshire. Approximately 60 miles of pipeline laterals and loops were planned to be constructed in Massachusetts, Connecticut and New Hampshire.

Kinder Morgan announced last week it had suspended further work and expenditures on the Northeast Energy Direct project. In its statement, Kinder Morgan noted that in July 2015 the company authorized Tennessee Gas Pipeline to proceed with the project based on existing contractual commitments at the time by local gas distribution companies to purchase natural gas from the project, as well as expected commitments from additional LDCs, electric distribution companies, and other market participants in New England.

However, since then Kinder Morgan notes, “Unfortunately, despite working for more than two years and expending substantial shareholder resources, TGP did not receive the additional commitments it expected. As a result, there are currently neither sufficient volumes, nor a reasonable expectation of securing them, to proceed with the project as it is currently configured.”

The company said several factors caused the insufficient demand for the natural gas the pipeline was to deliver, including the lack of established regulatory procedures in New England to facilitate binding electric distribution company commitments, as well as the low cost for natural gas that makes it difficult for producers to make new long-term commitments.

“Further, current market conditions and counter-party financial instability have called into question TGP's ability to secure incremental supply for the project,” Kinder Morgan states. “Given these market conditions, continuing to develop the project is not an acceptable use of shareholder funds.”

On Friday, the New York State Department of Environmental Conservation announced the denial of the Clean Water Act Section 401 Water Quality Certification for the proposed Constitution Pipeline.

In its denial, the agency stated that although it requested significant mitigation measures to limit the project's effect on the state's water bodies, the new right-of-way construction would impact approximately 250 streams across New York State. “Many of those streams are unique and sensitive ecological areas, including trout spawning streams, old-growth forest, and undisturbed springs, which provide vital habitat and are key to the local ecosystems,” the DEC noted.

The 30-inch underground pipeline is proposed to extend from Susquehanna County, PA., to the Iroquois Gas Transmission and Tennessee Gas Pipeline systems in Schoharie County, N.Y. The pipeline is intended to supply natural gas to customers in New York and New England.

The department also charges that although it repeatedly requested Constitution Pipeline officials to provide a “comprehensive and site-specific analysis of depth for pipeline burial to mitigate the project's environmental impact” the company provided only a limited analysis of burial depth for 21 of the 250 New York streams. The DEC also stated that it received reports of landowners, “possibly with Constitution's knowledge, clear cut old-growth trees along the right-of-way for the pipeline, including trees near streams and water bodies, even after the Federal Energy Regulatory Commission ruled that Constitution could not cut trees in the right-of-way.”

In a press statement, Constitution Pipeline has not ruled out an appeal of the state DEC's ruling. “We are very disappointed by today's decision. We remain absolutely committed to building this important energy infrastructure project. We are in the process of analyzing the stated rationale for the denial. Once that review is complete we will assess our options, which may include an appeal to the U.S. Circuit Court of Appeals,” the company states.

In January, Constitution Pipeline announced it had received authorization from the Federal Energy Regulatory Commission to proceed with limited tree felling activities along its federally-certificated pipeline right-of-way in Pennsylvania.

Environmental groups hailed the decision by Kinder Morgan to shelve the Northeast Energy Direct project as well as the New York State DEC's clean water permit denial in connection with the Constitution Pipeline.

Riverkeeper's chief prosecuting attorney Robert F. Kennedy, Jr. says of the DEC's decision: “I commend Governor Cuomo and the DEC for taking decisive action against the onslaught of destructive pipeline projects facing New York State. The Constitution Pipeline has always been bad news for New York waters and communities, and today the state did its job to protect them.”

Riverkeeper president Paul Gallay adds, “This is the right move by Governor Cuomo and it comes at a crucial time. It will protect the Hudson River and Schoharie Creek and help us ramp down on fossil fuel infrastructure, not build more of it. It's a huge step towards achieving our environmental and climate goals.”

Kinder Morgan

DRACUT, MA—Two natural gas pipelines worth a combined more than $4 billion that were to either traverse across Pennsylvania, New York and Massachusetts or supply energy to portions of New England, suffered significant setbacks last week.

The largest project—the $3.3-billion Northeast Energy Direct natural gas pipeline—was shelved last week by its developer Kinder Morgan, Inc . of Houston and its subsidiary Tennessee Gas Pipeline Co . due to the low energy price environment and lack of demand.

On Friday, New York State regulators denied key water quality certifications required for the Constitution Pipeline to proceed to construction. That 124-mile gas pipeline project, being developed by a partnership of Williams, Cabot Oil & Gas, Piedmont Natural Gas and WGL Holdings, was estimated to cost $683 million to plan and build, according to a 2013 economic impact study commissioned by the developer.

Both projects were highly controversial and were opposed by a host of environmental groups in New York, Massachusetts and New England.

The Northeast Energy Direct gas pipeline project is a combination of TGP's proposed Pennsylvania to Wright, NY (133 miles) and Wright, NY, to Dracut, MA, project, which would result in the construction of approximately 53 miles of pipeline co-located with TGP's existing system and an existing utility corridor in New York, 64 miles of pipeline in Massachusetts and approximately 71 miles of pipeline in New Hampshire. Approximately 60 miles of pipeline laterals and loops were planned to be constructed in Massachusetts, Connecticut and New Hampshire.

Kinder Morgan announced last week it had suspended further work and expenditures on the Northeast Energy Direct project. In its statement, Kinder Morgan noted that in July 2015 the company authorized Tennessee Gas Pipeline to proceed with the project based on existing contractual commitments at the time by local gas distribution companies to purchase natural gas from the project, as well as expected commitments from additional LDCs, electric distribution companies, and other market participants in New England.

However, since then Kinder Morgan notes, “Unfortunately, despite working for more than two years and expending substantial shareholder resources, TGP did not receive the additional commitments it expected. As a result, there are currently neither sufficient volumes, nor a reasonable expectation of securing them, to proceed with the project as it is currently configured.”

The company said several factors caused the insufficient demand for the natural gas the pipeline was to deliver, including the lack of established regulatory procedures in New England to facilitate binding electric distribution company commitments, as well as the low cost for natural gas that makes it difficult for producers to make new long-term commitments.

“Further, current market conditions and counter-party financial instability have called into question TGP's ability to secure incremental supply for the project,” Kinder Morgan states. “Given these market conditions, continuing to develop the project is not an acceptable use of shareholder funds.”

On Friday, the New York State Department of Environmental Conservation announced the denial of the Clean Water Act Section 401 Water Quality Certification for the proposed Constitution Pipeline.

In its denial, the agency stated that although it requested significant mitigation measures to limit the project's effect on the state's water bodies, the new right-of-way construction would impact approximately 250 streams across New York State. “Many of those streams are unique and sensitive ecological areas, including trout spawning streams, old-growth forest, and undisturbed springs, which provide vital habitat and are key to the local ecosystems,” the DEC noted.

The 30-inch underground pipeline is proposed to extend from Susquehanna County, PA., to the Iroquois Gas Transmission and Tennessee Gas Pipeline systems in Schoharie County, N.Y. The pipeline is intended to supply natural gas to customers in New York and New England.

The department also charges that although it repeatedly requested Constitution Pipeline officials to provide a “comprehensive and site-specific analysis of depth for pipeline burial to mitigate the project's environmental impact” the company provided only a limited analysis of burial depth for 21 of the 250 New York streams. The DEC also stated that it received reports of landowners, “possibly with Constitution's knowledge, clear cut old-growth trees along the right-of-way for the pipeline, including trees near streams and water bodies, even after the Federal Energy Regulatory Commission ruled that Constitution could not cut trees in the right-of-way.”

In a press statement, Constitution Pipeline has not ruled out an appeal of the state DEC's ruling. “We are very disappointed by today's decision. We remain absolutely committed to building this important energy infrastructure project. We are in the process of analyzing the stated rationale for the denial. Once that review is complete we will assess our options, which may include an appeal to the U.S. Circuit Court of Appeals,” the company states.

In January, Constitution Pipeline announced it had received authorization from the Federal Energy Regulatory Commission to proceed with limited tree felling activities along its federally-certificated pipeline right-of-way in Pennsylvania.

Environmental groups hailed the decision by Kinder Morgan to shelve the Northeast Energy Direct project as well as the New York State DEC's clean water permit denial in connection with the Constitution Pipeline.

Riverkeeper's chief prosecuting attorney Robert F. Kennedy, Jr. says of the DEC's decision: “I commend Governor Cuomo and the DEC for taking decisive action against the onslaught of destructive pipeline projects facing New York State. The Constitution Pipeline has always been bad news for New York waters and communities, and today the state did its job to protect them.”

Riverkeeper president Paul Gallay adds, “This is the right move by Governor Cuomo and it comes at a crucial time. It will protect the Hudson River and Schoharie Creek and help us ramp down on fossil fuel infrastructure, not build more of it. It's a huge step towards achieving our environmental and climate goals.”