Spectra Energy Corporation has received final approval from the Federal Energy Regulatory Commission (FERC) to commence work on the $1.2bn New Jersey-New York Expansion Project.
The project entails a 20-mile expansion of the company's Texas Eastern Transmission and Algonquin Gas Transmission interstate pipeline networks, sourcing gas from the Marcellus shale in Pennsylvania.
Upon completion, the project will connect New York to neighbouring New Jersey and provide consumers with greater sources of gas supplies, by delivering about 800 million cubic feet of natural gas per day for homes and businesses across the country.
Spectra Energy Corporation president and CEO Greg Ebel said the multi-year review by numerous federal, state and local agencies has culminated in the formal approval by FERC to commence construction of the New Jersey-New York Expansion Project.
"We will continue to cooperate with the communities and appropriate regulatory agencies as we complete work on a project that will provide critically-needed pipeline infrastructure, as well as significant environmental and economic benefits to the region," he added.
Spectra Energy plans to begin construction in the coming weeks and complete the project during the fourth quarter of 2013.
The company said the project will improve regional air quality by reducing the emission of 6 million tons per year of carbon dioxide as well as alleviaing seasonal natural gas volatility, resulting in an estimated $700m of total annual energy savings in New Jersey and New York.
Image: The NY-New Jersey pipeline will expand the Spectra's Texas Eastern and Algonquin pipeline networks. Photo: Spectra Energy.