South Jersey Resources Group, LLC (SJRG), a wholly owned non-utility subsidiary of South Jersey Industries, Inc., has executed a joint five-year agreement for fuel supply management services to Tyr Energy’s Hickory Run Energy Station in Lawrence County, Pennsylvania. Under the terms of the contract, SJRG will be the exclusive provider of natural gas supplies and the services associated with managing those supplies for the generating station.
“Our wholesale commodity business has benefited significantly from the abundant and affordable natural gas supplies located in the nearby Marcellus and Utica shale gas basins,” said SJRG President Gregory M. Nuzzo. “Fuel supply management represents one of the fastest growing areas of our business and the Hickory Run Energy Station contract expands our highly successful fuel supply management portfolio, as we have now executed 11 contracts to provide this niche service for the growing gas-fired merchant electricity generation industry.”
The proposed facility is a natural-gas fueled, approximately 1,000 megawatt combined-cycle gas turbine electric power generating station located near the Pennsylvania/Ohio border. Commercial operations for the facility are expected to begin in Q2 2020. Once built, the plant will deliver power to the PJM energy market, which serves more than 65 million customers located in 13 states and the District of Columbia.
The facility will burn up to 162,000 dekatherms of natural gas per day at maximum capacity. As part of managing the fuel supply for the Hickory Run facility, SJRG will also manage 90,000 dekatherms per day of pipeline capacity for Tyr on an existing Tennessee Gas Pipeline from the Marcellus Shale.