PennEast Pipeline Company LLC, (PennEast) announced today it submitted its application September 24, 2015, to FERC for a permit to proceed with pipeline construction of the proposed PennEast Pipeline, signaling the next critical step in offering eastern Pennsylvania and New Jersey energy consumers the environmental and economic benefits of abundant, locally produced natural gas.
PennEast is requesting that FERC issue a Certificate of Public Convenience and Necessity, which would authorize PennEast to construct, install, own, operate and maintain the approximately 118-mile, 36-inch diameter PennEast Pipeline. Upon completion, the underground natural gas pipeline would deliver approximately 1 billion cubic feet of natural gas per day and address the current pipeline constraints that result in higher costs, increased price volatility and reduced reliable energy supplies for consumers.
“The PennEast Pipeline Project is set to deliver reduced energy costs to residents and businesses, thousands of good jobs, and a cleaner environment by cultivating clean-burning American energy,” said Peter Terranova, chairman, PennEast Pipeline board of managers.
“This safe, state of the art infrastructure project will not only help meet the region’s energy demands, it can power New Jersey and Pennsylvania’s economies for years to come.”
Had the PennEast Pipeline been in service during the 2013-2014 winter, natural gas and electric consumers in eastern Pennsylvania and New Jersey would have saved more than $893 million in energy costs, according to an analysis by Concentric Energy Advisors. PennEast Pipeline would have an estimated $1.6 billion positive economic impact during design and construction alone, supporting approximately 12,160 jobs and an associated $740 million in wages according to a separate study by Econsult Solutions.
“The New Jersey State Chamber of Commerce supports the proposed PennEast Pipeline,” shared Tom Bracken, president and chief executive officer of the New Jersey State Chamber of Commerce. “This Project will provide a regional benefit to businesses and citizens, assist in boosting New Jersey’s economy, improve the overall critical energy infrastructure and make our state more competitive, which will lead to job creation.”
PennEast’s capacity is under long-term contracts, mainly by public utilities and other market-serving entities, such as electric generation companies, in New Jersey, Pennsylvania and New York. “These companies recognize the importance of PennEast to the local consumers they serve,” said Terranova.
“The manufacturing community applauds PennEast’s efforts to increase reliability of natural gas for local users,” said David Taylor, president of the Pennsylvania Manufacturers Association.
“New pipeline capacity like that of PennEast is the key to unlocking the competitive advantage of abundant Pennsylvania natural gas. A recent analysis found that shale gas development could provide U.S. manufacturers with cost savings of $22.3 billion in 2030 and $34.1 billion in 2040, but these savings are contingent on new pipelines like PennEast delivering affordable natural gas to users.”
Pending regulatory approval and issuance of a FERC certificate, PennEast anticipates beginning construction in 2017. AGL Resources; NJR Pipeline Company; PSEG Power LLC; SJI Midstream; Spectra Energy Partners and UGI Energy Services form the PennEast Pipeline Company. UGI Energy Services serves as the project manager and would be the operator of the proposed PennEast Pipeline, announced in August 2014.