New York state’s utility regulator approved a long-term gas plan floated by National Grid that would expand natural gas infrastructure in New York City.
The utility said its plan is based on the region’s appetite for natural gas and includes a new pipeline expansion the state quashed once already. The embrace of the plan by the Public Service Commission comes despite a state climate law mandating New York quit fossil fuels and transition to clean energy.
Gov. Kathy Hochul’s administration has reined in much of the clean-energy momentum created in New York under her predecessor, former Gov. Andrew Cuomo. With energy prices skyrocketing and the Trump administration pressuring states to use more fossil fuels, a landmark 2019 law requiring New York to get off fossil fuels by 2050 has taken a back seat.
“The PSC's action recognizes what Gov. Hochul has regularly been warning: We need to find different ways to ensure our energy system can continue to operate reliably as our demand increases,” her spokesperson Ken Lovett wrote in an email. “At a time when the federal government has launched a full-on attack on renewables, the governor is pushing an all-of-the-above approach that prioritizes affordability, grid reliability and economic development.”
National Grid’s gas plan emphasizes the importance of liquefied natural gas, or LNG, facilities in Greenpoint and Holtsville, which make up about 13% of the downstate region’s natural gas supply. LNG is natural gas that has been cooled to a liquid state, about -260 degrees Fahrenheit, which reduces its volume by 600 times, allowing for easier storage and transportation by trucks.
But LNG is highly flammable and quickly expands if it leaks or is accidentally released, resulting in explosive clouds. In 1973, an LNG explosion on Staten Island killed 40 workers. And Cuomo killed a proposed LNG facility off the coast of Long Island 10 years ago, saying the potential hazard the facility posed “was not worth the risk.”
The National Grid plan includes a small expansion of the Greenpoint LNG facility to increase efficiency of delivery.
PSC Chair Rory Christian — who used to advocate for clean energy at the nonprofit Environmental Defense Fund — said last week that natural gas is a crucial part of New York’s energy profile. He cited fears of “widespread gas outages … given the narrow margin between available gas supply and demand.”
He pointed to millions of New Yorkers who rely on gas to heat their homes, and said a safe reliable gas supply is something "everyone should agree is nonnegotiable.”
Clean energy advocates did not agree.
“We're very concerned that the Public Service Commission just threw New Yorkers under the bus,” Kim Fraczek, director of local advocacy group Sane Energy Project, said.
She said the plan was contrary to the state's 2019 climate law. “It’s resisting our laws and sets us up for a very dismal and very expensive future," Fraczek said.
National Grid’s report cites extreme weather as the main justification for investment in liquefied natural gas infrastructure.
National Grid cited Winter Storm Elliott in 2023, when three main pipelines that move most of the city’s supply were hindered by an equipment failure due to freezing temperatures. The liquefied natural gas supply was critical in keeping adequate flow to customers, according to the plan.
National Grid said that to retire its Greenpoint LNG facility, nearly 300,000 single-family homes would have to be disconnected from the gas system and fully electrified. The report’s analysis calculates the full cost of building electrification at 23 times the annual cost to operate and maintain the Greenpoint facility.
Sally Librera, president of its New York business, said National Grid is “committed to delivering secure, affordable and clean energy to the communities we serve.”
Along with the LNG facility, the plan states new pipelines are critical to increase gas supply to the New York City metro area. The Northeast Supply Enhancement project, which was deemed an environmental threat and quashed by Cuomo, would provide 13% more gas.
"The PSC order today affirms our determination that the Northeast Supply Enhancement (NESE) pipeline project is needed for enhanced reliability of our gas network,” Librera wrote.
While accepting the plan presented by National Grid, the PSC directed the utility company to report on non-pipeline alternatives, electrification efforts and how it will address supply issues if the pipeline is or isn’t built.
The plan affects the service of 2.5 million customers in the New York City area, the largest portion of the state relying on gas.
This story has been updated to reflect comments from National Grid.