Consolidated Edison Co. (Con Ed) on Thursday said it had inked another deal with Iroquois Gas Transmission System LP to get more natural gas into its New York service territory.
Iroquois would expand its existing pipeline system to move more incremental supplies into New York City, where Con Ed has warned of moratoriums on new gas hookups absent any new pipeline infrastructure to serve the area. Specifically, Iroquois would upgrade compression facilities to move supply into the Bronx and parts of Manhattan and Queens. Pending regulatory approval, Con Ed said the new supplies could become available by November 2023.
“This agreement supports continued economic growth in New York City by supplementing existing natural gas capacity without the construction of a new pipeline,” Con Ed said. “When combined with Con Ed’s continued efforts to advance renewables and alternative technologies, the project provides a superior environmental alternative to the continued use of heating oil, and will provide customers with clean, affordable heating and cooking solutions.”
The utility added that the project would also include “numerous industry leading methane reduction measures.”
Con Ed announced a similar deal with Tennessee Gas Pipeline Co. LLC last month for incremental supply in November 2023 to help ease a current moratorium on new hookups to the north in Westchester County. The company announced that moratorium in January, citing a lack of supplies to meet growing demand that has risen with heating oil conversions and developers’ preference for gas in new buildings.
The utility later warned of a similar situation in New York City, especially if Transcontinental Gas Pipe Line Co. LLC’s Northeast Supply Enhancement (NESE) project is not approved by state regulators. That project would expand Transco capacity by 400 MMcf/d primarily aimed at demand in New York City. National Grid has warned of the same without Northeast Supply, which is being strongly opposed by environmental groups, some public officials and others.
The state Department of Environmental Conservation, which has rejected approvals for other gas infrastructure in recent years, is expected to decide on NESE’s water quality certification by May 15. Without it, the project would not immediately be able to move forward, despite the Federal Energy Regulatory Commission's recent approval.
As it awaits additional natural gas supplies, Con Ed said it continues to implement its Smart Solutions program for customers interested in gas alternatives, including incentives to electrify heating systems, upgrade HVAC controls, install geothermal heat pumps or weatherize their homes. The company delivers electricity, natural gas and steam to 3.5 million customers in New York City and Westchester County.