US-based Kinder Morgan's subsidiary Tennessee Gas Pipeline (TGP) has abandoned its plans to build $3.3bn Northeast Energy Direct (NED) pipeline project as it failed to receive enough natural gas commitments from businesses.
The 30-inch, 350 mile long pipeline project was planned to run from Wright, New York to Dracut, Massachusetts to meet increased demand for natural gas.
With a maximum design capacity of 1.2 billion cubic feet per day (Bcf/d), the project would connect low-cost natural gas supplies from northern Pennsylvania to New York as well as New England markets.
Kinder Morgan said that the board’s initial approval was based on existing contractual commitments at the time by local gas distribution companies (LDCs) to purchase natural gas from the project.
Commenting on the company’s decision US Senator Edward Markey said: "Using New England as a throughway to export US gas to overseas markets might be good for the bottom lines of pipeline companies but it could raise prices and be a disaster for consumers and businesses in our region.
"We need to build on the work that we have done in New England to move to a clean energy economy."
TGP, despite working for over two years, failed to get the additional commitments.
Senator Kelly Ayotte said: "I was the first statewide elected official to oppose the pipeline moving forward because of the many unanswered questions and concerns raised by New Hampshire residents who would have been affected by this project, so I am pleased by today’s announcement."
TGP said it plans to continue to work with customers in a bid to explore potential alternative solutions to address their needs.