PennEast Pipeline Company is planning to construct a 100mi pipeline intended to lower the cost natural gas produced in the Marcellus Shale region to homes and businesses in Pennsylvania and New Jersey. PennEast is a joint project of AGL Resources; NJR Pipeline Company, a subsidiary of New Jersey Resources; South Jersey Industries and UGI Energy Services (UGIES), a subsidiary of UGI Corporation.
The PennEast Pipeline is designed to provide natural gas service to the equivalent of 4.7M homes, up to 1bcf per day, offering consumer savings in lower energy and gas transportation costs. The pipeline will begin in Luzerne County in north-eastern Pennsylvania and end at Transco’s Trenton-Woodbury interconnection in New Jersey. PennEast is investing nearly USD 1B to build the pipeline with the costs split among the four entities. UGIES is the project manager for the development of the project and will operate the pipeline.
PennEast will begin preliminary engineering studies in the coming months, along with a formal application before the Federal Energy Regulatory Commission (FERC). If all local, state and federal approvals are timely approved, construction of the pipeline could begin in 2017.