New Jersey Court Blocks $1 Billion Gas Pipeline Over Public Comment Concerns

A federal court in New Jersey has put on hold a $1 billion natural gas pipeline project off Staten Island's shores, handing environmental groups another win in their long-running battle over the proposal.

The U.S. Court of Appeals for the Third Circuit ruled that the New Jersey Department of Environmental Protection did not sufficiently explain why the pipeline should be certified and did not allow enough opportunity for public comment.

The Northeast Supply Enhancement project includes a 17.4-mile underwater pipeline running through the Raritan and Lower New York bays off Staten Island, along with related piping and facility upgrades in New York, New Jersey, and Pennsylvania.

National Grid has cited rising regional energy demand as the reason it needs the line. The pipeline's fate will help determine whether the utility's gas customers on Staten Island and elsewhere in New York City cover the cost of a new interstate line through delivery rates.