The real issue, which has been going on for years, is that CT doesn't want a new pipeline running thru the state just to benefit Long Island, which is part of NY. The argument is safety in CT and also I remember the pipeline needs to cross private property, and needs various approvals for that. As you get closer to the sound, the property gets really expensive, and the property owners have a good deal of political clout to block the line.
And the Long Island Sound isn't a river; it's a good deal wider and it looks like the environmental impact report that SE commissioned wasn't complete. I think that was just a cover, tho. If you lokm hard enough at any impact report, you can find holes.