WYOMISSING, Pa., Sept. 24, 2015 (GLOBE NEWSWIRE) -- PennEast Pipeline Company LLC, (PennEast) announced today it is submitting its application September 24, 2015, to FERC for a permit to proceed with construction of the proposed PennEast Pipeline, signaling the next critical step in offering eastern Pennsylvania and New Jersey energy consumers the environmental and economic benefits of abundant, locally produced natural gas.
PennEast is requesting that FERC issue a Certificate of Public Convenience and Necessity, which would authorize PennEast to construct, install, own, operate and maintain the approximately 118-mile, 36-inch diameter PennEast Pipeline. Upon completion, the underground natural gas pipeline would deliver approximately 1 billion cubic feet of natural gas per day and address the current pipeline constraints that result in higher costs, increased price volatility and reduced reliable energy supplies for consumers.
"The PennEast Pipeline Project is set to deliver reduced energy costs to residents and businesses, thousands of good jobs, and a cleaner environment by cultivating clean-burning American energy," said Peter Terranova, chairman, PennEast Pipeline board of managers. "This safe, state of the art infrastructure project will not only help meet the region's energy demands, it can power New Jersey and Pennsylvania's economies for years to come."
Had the PennEast Pipeline been in service during the 2013-2014 winter, natural gas and electric consumers in eastern Pennsylvania and New Jersey would have saved more than $893 million in energy costs, according to an analysis by Concentric Energy Advisors. PennEast Pipeline would have an estimated $1.6 billion positive economic impact during design and construction alone, supporting approximately 12,160 jobs and an associated $740 million in wages according to a separate study by Econsult Solutions.
"The New Jersey State Chamber of Commerce supports the proposed PennEast Pipeline," shared Tom Bracken, president and chief executive officer of the New Jersey State Chamber of Commerce. "This Project will provide a regional benefit to businesses and citizens, assist in boosting New Jersey's economy, improve the overall critical energy infrastructure and make our state more competitive, which will lead to job creation."
PennEast's capacity is under long-term contracts, mainly by public utilities and other market-serving entities, such as electric generation companies, in New Jersey, Pennsylvania and New York. "These companies recognize the importance of PennEast to the local consumers they serve," said Terranova.
"The manufacturing community applauds PennEast's efforts to increase reliability of natural gas for local users," said David Taylor, president of the Pennsylvania Manufacturers Association. "New pipeline capacity like that of PennEast is the key to unlocking the competitive advantage of abundant Pennsylvania natural gas. A recent analysis found that shale gas development could provide U.S. manufacturers with cost savings of $22.3 billion in 2030 and $34.1 billion in 2040, but these savings are contingent on new pipelines like PennEast delivering affordable natural gas to users."
Pending regulatory approval and issuance of a FERC certificate, PennEast anticipates beginning construction in 2017. AGL Resources; NJR Pipeline Company; PSEG Power LLC; SJI Midstream; Spectra Energy Partners and UGI Energy Services form the PennEast Pipeline Company. UGI Energy Services serves as the project manager and would be the operator of the proposed PennEast Pipeline, announced in August 2014.
For additional information on the PennEast Pipeline, visit PennEastPipeline.com or call (844) 347-7119.
About PennEast Member Companies:
AGL Resources www.aglresources.com
AGL Resources (NYSE:GAS) is an Atlanta-based energy services holding company with operations in natural gas distribution, retail operations, wholesale services and midstream operations. AGL Resources serves approximately 4.5 million utility customers through its regulated distribution subsidiaries in seven states. The company also serves approximately 630,000 retail energy customers and approximately 1.2 million customer service contracts through its SouthStar Energy Services joint venture and Pivotal Home Solutions, which market natural gas and related home services. Other non-utility businesses include asset management for natural gas wholesale customers through Sequent Energy Management and ownership and operation of natural gas storage facilities. AGL Resources is a member of the S&P 500 Index.
NJR Pipeline Company www.njresources.com
NJR Pipeline Company is a subsidiary of New Jersey Resources (NYSE:NJR), a Fortune 1000 company that provides safe and reliable natural gas and clean energy services, including transportation, distribution and asset management. NJR Pipeline is part of NJR's strong financial profile and ongoing commitment to invest in and own midstream assets, including natural gas storage and transportation pipelines. NJR's midstream assets are currently comprised of a 5.53 percent stake in Iroquois Pipeline and a 50 percent stake in Steckman Ridge, a 12 Bcf storage field in south central Pennsylvania, and now equity ownership in the PennEast Pipeline.
Public Service Enterprise Group www.pseg.com
Public Service Enterprise Group (NYSE:PEG) is a publicly traded diversified energy company with annual revenues of $10 billion. Its operating subsidiaries are: PSEG Power, Public Service Electric and Gas Company (PSE&G) and PSEG Long Island.
SJI Midstream www.sjindustries.com
SJI Midstream is a direct subsidiary of South Jersey Industries (NYSE:SJI), formed in 2014 to house the company's interest in midstream business activities, including its equity investment in the PennEast Pipeline project. SJI, an energy services holding company based in Folsom, NJ, operates its business through two additional business segments, as well. South Jersey Gas, one of the nation's fastest growing natural gas utilities, delivers clean, efficient natural gas and promotes energy efficiency to more than 369,000 customers in southern New Jersey. SJI's non-regulated businesses, under South Jersey Energy Solutions, promote efficiency, clean technology and renewable energy by developing, owning and operating on-site energy production facilities – including Combined Heat and Power, Solar, and District Heating and Cooling projects; acquiring and marketing natural gas and electricity for retail customers; providing wholesale commodity marketing and fuel supply management services; and offering HVAC and other energy-efficiency related services.
Spectra Energy Partners www.spectraenergypartners.com
Spectra Energy Partners, LP (NYSE:SEP) is a Houston-based master limited partnership, formed by Spectra Energy Corp (NYSE:SE). SEP is one of the largest pipeline MLPs in the United States and connects growing supply areas to high-demand markets for natural gas, natural gas liquids, and crude oil. These assets include more than 17,000 miles of transmission and gathering pipelines, approximately 150 billion cubic feet of natural gas storage, and approximately 4.8 million barrels of crude oil storage.
UGI Energy Services, LLC www.ugies.com
UGI Energy Services is a subsidiary of UGI Corporation (NYSE:UGI). UGI Energy Services markets natural gas, electricity and liquid fuels to approximately 19,000 residential, commercial, industrial, institutional and government customers in nine states and Washington, D.C. In addition, it stores and delivers natural gas and generates electricity.