A New York judge ordered National Grid PLC's New York City gas utility to temporarily stop certain construction at its Brooklyn liquefied natural gas terminal in response to a lawsuit by local groups alleging the work is illegal.

New York State Supreme Court Justice Karen Rothenberg on July 27 placed a temporary restraining order on all construction activity and physical alterations outlined in a 2016 variance petition. National Grid submitted the petition to the Fire Department of New York, or FDNY, in order to obtain a fire code variance needed to fill and truck LNG within city limits.

The Sane Energy Project and Cooper Park Resident Council Inc. on July 23 sued National Grid USA subsidiary Brooklyn Union Gas Co., New York City and the FDNY over the construction at the company's Greenpoint Energy Center. In a petition, they alleged National Grid began work on a station for loading and unloading trucked LNG at the facility before the FDNY completed a necessary environment review process required by state law. They further alleged that the city and FDNY failed to act when notified of the activity.

"We feel some relief knowing the courts won't just give this abusive company a green light the way [New York City and the state] have," Sane Energy Project Director Kim Fraczek said in a press release. "Mayor [Bill] de Blasio and Gov. [Andrew] Cuomo have had every opportunity to live up to the climate champion banners they love to wave for the press, but fall short on climate action."

Rothenberg's order halted the construction until the petitioners' motion for an injunction is resolved. The petitioners asked the court to prohibit the construction from continuing until FDNY completes the City Environmental Quality Review process. The court set a deadline of Aug. 5 for National Grid, New York City and FDNY to respond.

Nick Paolucci, director of public affairs and press secretary for the New York City Law Department, said the department is reviewing the petition and will respond on Aug. 5. National Grid vowed to vigorously defend against the claims and expressed confidence that the temporary restraining order would be lifted and the matter dismissed.

"We are obviously disappointed and disagree with the court's decision to issue a [temporary restraining order] in this case without a hearing or an opportunity to present the facts surrounding our activities at the Greenpoint Energy Center and the serious flaws in plaintiffs' case," National Grid spokesperson Karen Young said in an email. "The activities at the Greenpoint Energy Center have been undertaken in compliance with all applicable laws, rules and regulations."

The LNG trucking station is one of several initiatives that National Grid has pursued to meet gas demand in its New York City service territory. The state has refused to permit new pipeline capacity into the territory, which prompted National Grid to place a moratorium on new gas hookups in 2019. As part of a settlement with New York to end the moratorium, National Grid agreed to produce reports and seek public input on supply alternatives.

In September 2020, an independent monitor appointed to oversee the settlement raised concerns that National Grid's inability to obtain permits jeopardized both short-term and long-term projects to meet peak winter gas demand. The monitor noted that National Grid's inability to secure a memorandum of understanding with New York City to truck LNG had caused the company to push the start date for construction of the Greenpoint facility from December 2020 to July 2021.