PennEast To Build $1 Billion Pipeline For Marcellus Shale Production

October 2014, Vol. 241, No. 10

PennEast Pipeline Co. plans to construct a 100-mile pipeline to bring lower cost natural gas produced in the Marcellus Shale to homes and businesses in Pennsylvania and New Jersey. PennEast is a joint project of AGL Resources, NJR Pipeline Co., a subsidiary of New Jersey Resources, South Jersey Industries and UGI Energy Services (UGIES), a subsidiary of UGI Corp.

The PennEast Pipeline is designed to provide natural gas service to the equivalent of 4.7 million homes, up to 1 Bcf/d. The pipeline will begin in Luzerne County in northeastern Pennsylvania and end at Transco’s Trenton-Woodbury interconnection in New Jersey. PennEast is investing nearly $1 billion with costs split among the four entities. UGIES is project manager and will operate the pipeline.

PennEast will begin preliminary engineering studies in the coming months along with a formal application before FERC. Construction could begin in 2017.