PSEG Power joins $1bn pipeline project in New Jersey, US

PSEG Power has joined a consortium of companies that is building a $1bn pipeline project in New Jersey, US.

The 100-mile PennEast Pipeline will start in Luzerne County in north-eastern Pennsylvania and end at Transco’s Trenton-Woodbury interconnection in New Jersey.

Upon completion, the pipeline will provide natural gas service for around 4.7 million homes and transport up to 1 billion cubic feet of natural gas per day.

Other pipeline partners include AGL Resources, NJR Pipeline, South Jersey Industries and UGI Energy Services.

PSEG Power will have a 12% stake in the pipeline while the other members will each have 22% interest.

The project, which will bring lower-cost natural gas to New Jersey, will create around 2,000 jobs in the construction phase.

PSEG Power president Bill Levis said: "This project will provide New Jersey with reliable access to lower-cost, clean natural gas.

"The drop in natural gas prices, coupled with an increased emphasis on reducing environmental impacts, has led to a significant growth in the demand for natural gas.

"This project will help meet that growing demand by ensuring that New Jersey suppliers have greater and more reliable access to affordable natural gas."

PennEast, which has started preliminary engineering studies, will submit a formal application to the Federal Energy Regulatory Commission (FERC) in 2015.

Construction on the project is expected to start in 2017, pending approvals.