AUSTILL NATURALLY GAS is offering a $2.2 billion deal to buy all of the gas from New York state, which is being sued by the city for dumping the gas on the Hudson River.
The deal would be the biggest natural gas acquisition in the state’s history and could be worth as much as $2 million a month.
The deal would also create the largest natural gas pipeline in the U.S.
Natural gas is used in everything from cars to power plants to appliances and the heating and cooling system of homes.
The state’s attorney general has sued the city, alleging that it illegally dumped about 1.3 billion cubic feet of natural gas into the Hudson in 2014.
The lawsuit also alleged that the city was able to move the gas to a new site because of a loophole in the permitting process.
The city’s attorney said Tuesday that the deal would result in a major boost to the economy, adding that the natural gas deal would generate up to $7 billion a year in economic activity in New York.
“It is important that the New York City Department of Environmental Conservation, and the New Yorkers who use our gas, understand that the new AUSTLL Natural Gas is an investment in New Yorkers jobs, their health and their well-being,” New York Attorney General Eric Schneiderman said in a statement.
Schneiderman’s office announced the deal Wednesday morning.
AUSTICK NATURALS GAS said in the statement that it would continue to operate the existing AUSTRESS NATURALLOGA natural gas distribution system, which currently serves 1.5 million homes.
New York City has filed suit against the city and AUSTIN NATUROLA, saying that the gas company intentionally dumped the gas into Lake Champlain and its tributaries.
The suit also said that the lawsuit is being filed as a preemptive strike.
The case is being brought by a group of residents, business owners and environmentalists in New Jersey, New York, Pennsylvania and New York’s other southern and northern counties.
The plaintiffs want the state to stop pumping natural gas and start drilling new wells.