This acquisition could close in the second quarter of 2017, subject to certain conditions precedent being met including approval by the PennEast Board. Upon the closing of this acquisition, Spectra Energy Partners will increase its equity investment in PennEast from 10 percent to 20 percent.
“From its inception, we have viewed the PennEast Pipeline as a critical project for the mid-Atlantic, connecting abundant domestic supplies to growing local markets in need of additional clean natural gas,” said Bill Yardley, president of Spectra Energy Partners. “PennEast provides an opportunity to build upon our very strong footprint in the region.”
Bill Levis, president of PSEG Power, emphasized PSEG will remain a PennEast customer for its committed capacity.
“This Project will provide PSE&G customers with greater and more reliable access to affordable natural gas,” Levis said. “We look forward to being a PennEast customer. We’ve decided to put our focus on our core business – constructing three new combined cycle power plants and running our diverse fleet of generation plants.”
Dat Tran, chairman of the board of managers for PennEast, said the company is happy that Spectra Energy Partners is increasing its interest in the project and that PSE&G will remain a customer.
“We’re pleased with PennEast’s progress and are excited to have Spectra Energy Partners, with its extensive experience in the region, become an equal equity partner,” said Tran. “With respect to PSEG, we look forward to continue working with them as a PennEast customer. PSEG’s unwavering commitment to its subscribed PennEast capacity underscores the need for lower cost natural gas to power New Jersey’s future, and directly rebuts the notion this Project is about excessive returns – rather than a need for the gas.”