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For Immediate Release: 03/14/2024 Rory M. Christian, Chair Contact:
James Denn | James.Denn@dps.ny.gov | (518) 474-7080
24021/24-G-0045
March 14, 2024
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National Grid Shareholders Pay $1.7 Million for Brooklyn Gas Incident |
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Gas Utility Pays Financial Settlement — Largest in 2024 — a Result of 2022 Gas Accident ALBANY — The New York State Public Service Commission (Commission) today approved a significant financial settlement whereby National Grid shareholders would pay $1.7 million for enhanced safety measures and training at the Greenpoint liquid natural gas (LNG) facility in Brooklyn due to a gas incident in 2022. No member of the public was injured as a result of the incident.
“Public safety has been and remains our number one concern,” Commission Chair Rory M. Christian said. “Our investigation determined that National Grid policies and procedures were inadequate to prevent the explosion incident that occurred in 2022 and that the company did not conform to the federal or state safety codes regarding the management of liquid natural gas. As a result, National Grid will pay a significant financial settlement for their mistakes.”
On August 17, 2022, National Grid employees performed a nitrogen purge operation on a flare line at the Greenpoint LNG facility in Brooklyn. The procedure was being performed on a 200-foot section of pipeline leading up to a vertical flare column; the purpose of the nitrogen purge procedure was to facilitate a subsequent vaporizer process piping hydrotest.
During the purge operation, National Grid employees mistakenly left the vertical flare activated. An ignition then occurred, leading to an internal explosion and ‘flashback.’ The mixture of air and combustible gas in the pipeline led to an energy release on the ground level, emanating from the area of the open flange.
On June 20, 2023, the Department’s Office of Investigations and Enforcement interviewed the National Grid supervisor on scene during the incident. During the interview, the supervisor admitted that he left the flare in service on the day in question and that he did not obtain supervisory approval before initiating the purge. The supervisor also admitted that he erroneously left his gas detection device in ‘monitor’ mode instead of the appropriate ‘purge’ mode.
The DPS investigation determined that National Grid policies and procedures were inadequate to prevent the explosion incident and did not conform to the Code of Federal Regulations regarding the management of liquid natural gas.
To resolve the investigation and its findings, National Grid shareholders will pay $1.7 million for enhanced safety measures and training at the Greenpoint LNG facility. The training and enhanced safety measures will be reviewed by the Commission and will be expeditiously implemented. The shareholder penalty payment is the largest to date in 2024. The company had faced a maximum penalty of $1.9 million.
Today’s decision may be obtained by going to the Commission Documents section of the Commission’s Web site at www.dps.ny.gov and entering Case Number 24-G-0045 in the input box labeled "Search for Case/Matter Number". Many libraries offer free Internet access. Commission documents may also be obtained from the Commission’s Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500). If you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding this press release.
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