May 20 (Reuters) - U.S. energy regulators on Thursday approved Williams Companies Inc's request for two more years until May 2023 to build the proposed Northeast Supply Enhancement (NESE) project to transport natural gas from Pennsylvania to New York.
The U.S. Federal Energy Regulatory Commission (FERC) approved the roughly $1 billion project, which includes an offshore pipe between New Jersey and Long Island, New York, in May 2019.
That approval required Williams' to put the project in service by May 2021.
But Williams had to put NESE on hold because environmental regulators in New York and New Jersey did not approve water permits for the project.
Williams said it intends to refile water permit applications in both states before the end of 2021 and “remains fully committed to constructing the project.”
That was not the first time state regulators denied permits, called water quality certification, for the project.
After New York regulators denied water certification, the U.S. unit of British-energy firm National Grid Plc , which agreed to buy gas from Williams' pipeline, imposed a moratorium on signing new customers in May 2019.
National Grid, which serves about 1.8 million customers in Brooklyn, Queens, Staten Island and Long Island, said it would not have enough gas to supply existing and new customers without the pipe.
That prompted New York Governor Andrew Cuomo to threaten to revoke National Grid's license to operate its gas utility.
Ultimately, National Grid in November 2019 agreed to end the moratorium and pay $36 million, mostly on conservation and clean energy projects.
If built, NESE would add about 37 miles (60 km) of new pipeline and transport an additional 0.4 billion cubic feet per day of gas from Pennsylvania to New York. One billion cubic feet is enough gas for about 5 million U.S. homes for a day.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Williams Receives FERC Certificate Authorizing Northeast Supply Enhancement Project NY's Con Ed sticking with moratorium on new natural gas service in Westchester UPDATE 4-Trump signs orders targeting states' power to slow energy projects Williams Cos' PA-NY Constitution natgas pipeline gets another chance for regulatory nod FACTBOX-U.S. new natural gas pipeline projects In US, New York latest to say no to natural gas infrastructure plans UPDATE 1-New York adopts rules to phase out coal power plants by 2020 UPDATE 1-No new natural gas hookups in New York's Westchester County, Con Ed says Williams needs New York, New Jersey water permits for Northeast Supply natgas pipe New Jersey rejects key permits for Williams' natgas pipeline- AP
UPDATE 2-U.S. heating costs likely to be higher this winter than last - EIA Con Edison in deal to boost natgas flows to New York on Iroquois pipe National Grid says no new NYC natgas customers without Williams pipeline Williams expects to overcome environmental concerns on Northeast Supply natgas pipe New York denies PA-NY Williams Northeast Supply natgas pipe
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(Reporting by Scott DiSavino Editing by Marguerita Choy)
((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net))
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