Spectra Energy Corporation has received approval from the Federal Energy Regulatory Commission (FERC) for its proposed New Jersey-New York (NJ-NY) expansion project, which will transport natural gas to New York City.
The project, expected to cost $1.2bn, will connect New York to neighboring New Jersey and deliver about 800 million cubic feet of natural gas per day to homes and businesses across the city.
The pipeline will link to Spectra's Texas Eastern and Algonquin pipeline networks, sourcing gas from the Marcellus shale in Pennsylvania.
Spectra Energy president and chief executive officer Greg Ebel said the project's FERC certificate is the culmination of a comprehensive, multi-year review by numerous federal, state and local agencies.
"This milestone is a crucial step toward completing this project, which will provide critically needed pipeline infrastructure and numerous environmental and economic benefits to the region," Ebel added.
Upon completion in the fourth quarter of 2013, the project is expected to provide consumers with greater sources of gas supplies, meet residential and commercial demands for energy and improve regional air quality.
Image: The NY-New Jersey pipeline will connect to Spectra's Texas Eastern and Algonquin pipeline networks. Photo: Spectra Energy.