National Grid, Constellation Energy agree on LNG supply deal for Massachusetts facility
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National Grid, Constellation Energy agree on LNG supply deal for Massachusetts facility
(Reuters) - Britain's National Grid (NG.L) on Friday said it reached an agreement with gas supplier Constellation Energy (CEG.O) that would allow it to keep operating its Everett gas-import terminal for six years.
The Everett, Massachusetts, facility supplies natural gas to power plants and other utilities across New England. It was set to close with the May retirement of Constellation's Mystic Generating Station, a gas-fired power plant.
"The agreement will maintain a reliable and available supply of liquefied natural gas (LNG) for National Grid's 950,000 residential and business natural gas customers during peak heating demand days," National Grid said in a statement.
Massachusetts has to approve the agreement by May 1 to ensure the Everett terminal continues to operate.
In November, Federal Energy Regulatory Commission Chairman Willie Phillips and North American Electric Reliability Corp CEO James Robb wrote that there were concerns about local gas utilities' "ability to ensure reliability and affordability in the region without Everett."
