Northeast Direct Pipeline Suspended

Kinder Morgan is suspending further work on the Northeast Energy Direct project, a multi-billion-dollar natural gas pipeline that would have brought natural gas through western Massachusetts and into southern New Hampshire to the North Shore of Massachusetts, according to a press statement.

The project was started last summer as a way to “alleviate New England’s uniquely high natural gas and electricity costs caused by severely limited natural gas transportation capacity currently serving the region,” according to the company. The project was based on “existing contractual commitments” at the time and other market participants. However, the company announced on April 20, 2016, “despite working for more than two years and expending substantial shareholder resources, the (Tennessee Gas Pipeline Company) did not receive the additional commitments it expected” and there are “neither sufficient volumes nor a reasonable expectation of securing them, to proceed with the project as it is currently configured,” according to a statement.

In a statement, U.S. Sen. Kelly Ayotte, R-NH, said she was pleased with the announcement.

“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,” she said.

In the company’s fourth quarter financial statement, the company noted that the decision – as well as the suspension of a pipeline in Georgia – had removed more than $4 billion in capital backlog expenses

“We continue to focus on high-grading our growth project backlog to allocate capital to the highest return opportunities by reducing spend, improving returns and selectively joint venturing projects where appropriate,” according to president and CEO Steve Kean.

“I was proud to lead the fight against the Kinder Morgan pipeline project, which, after countless site visits, forums, and meetings with constituents, I deemed a poor deal for New Hampshire – both for our natural environment and the safety of our neighborhoods," U.S. Rep. Ann McLane Kuster, D-NH, said in a statement. "While we must pursue smart energy policies that lower energy costs for New Hampshire, this particular project would have taken advantage of our natural resources without providing sufficient benefits for our state. Since this project was first announced, I have constantly worked to amplify the numerous concerns of my constituents with FERC, and Kinder Morgan itself. I’m so pleased that Kinder Morgan has listened to our concerns, and I consider this a great win for the Granite State and for the many neighborhoods and grassroots advocates who joined together to work with me to ensure our voices were heard. I thank everyone involved in the opposition fight for all of their hard work, and I look forward to working with parties around New Hampshire to advance clean energy projects that make sense for our state and our communities.”