PennEast seeks FERC approval to construct $1bn natural gas pipeline in US

PennEast Pipeline Company has filed an application with the Federal Energy Regulatory Commission (FERC) of US for a permit to proceed with construction of the proposed $1bn natural gas pipeline from northeastern Pennsylvania to Mercer County.

Following the issuance of a certificate of public convenience and necessity by FERC, the company would be authorised to construct, install, own, operate and maintain the 118-mile, 36-inch diameter PennEast Pipeline.

Announced in August 2014, the proposed underground natural gas pipeline will begin from Luzerne County in northeastern Pennsylvania and end at Transco’s Trenton-Woodbury interconnection in New Jersey.

The pipeline will be designed to deliver about 1 billion ft³ of natural gas per day upon completion.

PennEast Pipeline board of managers chairman Peter Terranova said: "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.

"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."

The company estimates that the pipeline would have $1.6bn positive economic impact during design and construction alone.

A separate study by Econsult Solutions revealed that the design and construction of the pipeline would support about 12,160 jobs and an associated $740m in wages.

PennEast is awaiting regulatory approval and issuance of a FERC certificate, following which it plans to start construction in 2017.

PennEast Pipeline Company is a consortium of six extractive energy companies which include AGL Resources; NJR Pipeline; PSEG Power; SJI Midstream; Spectra Energy Partners and UGI Energy Services.

The PennEast Pipeline will be operated by UGI Energy Services which also serves as the project manager.

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Image: The PennEast Pipeline will deliver about one billion ft³ of natural gas per day upon completion. Photo: courtesy of puttsk/FreeDigitalPhotos.net