New Housing Development Hits Standstill as Gas Pipeline Capacity Maxes Out in NH Lakes Region

New Hampshire's Lakes Region is facing a halt on new natural gas connections as Liberty Utilities cannot expand capacity with its current infrastructure. The announcement signals a potential delay for housing and development projects in Franklin, Gilford, Laconia, Northfield, and Tilton, according to David Chunn, planning and zoning director for the city of Franklin, in information provided to the New Hampshire Business Review.

During a Tilton Select Board meeting on Dec. 4, Liberty Utilities engineer Ian Crabtree stated that demand in the area had reached the upper limits of what the company could offer. Local officials said there was little warning about capacity issues and argue that regulators or the utility should have informed municipalities earlier to aid planning.

According to the New Hampshire Business Review, the issue stems from an existing 6‑inch gas line installed in the 1960s that has not been fully upgraded. Expanding to a 12‑inch line would be a significant project expected to take five to seven years.

The capacity constraints Liberty cited mean it cannot serve some of its customers within its franchised area. That scenario has created a bottleneck that threatens planned developments such as the Laconia Village project, which includes approximately 2,000 housing units.

Electrification, especially with heat pumps, has been discussed as a faster, potentially cost‑effective option, although New Hampshire's electricity costs are high. Improved building envelopes and efficient electrification could support significant developments without gas, officials noted.

Expanding the gas network would be financed by all ratepayers. Regulators like the Public Utilities Commission would assess whether the investment is justified, given statewide impacts and potential rate effects.