FERC on Thursday granted Transcontinental Gas Pipe Line Co. LLC (Transco) a two-year extension to build and place its Northeast Supply Enhancement Project (NESE) into service.

The project’s certificate order from the Federal Energy Regulatory Commission had originally called on Transco to bring the 400,000 Dth/d expansion online by May 3. However, the project, designed to expand natural gas service into New York City, has faced regulatory setbacks at the state level.

Last year the New York State Department of Environmental Conservation and the New Jersey Department of Environmental Protection each denied water quality permits under section 401 of the Clean Water Act needed for the NESE to move forward with construction.

FERC order, issued as part of the Commission’s...