PennEast Pipeline Company files to construct PennEast Pipeline Project using phased approach

PennEast Pipeline Company LLC announced Jan. 31 that it filed an amendment with the Federal Energy Regulatory Commission (FERC) to construct the PennEast Pipeline Project in two separate phases.

Phase One would include 68 miles of 36-inch pipe, built entirely within Pennsylvania, and ready to provide natural gas service by November 2021. Phase Two would include the remaining route in Pennsylvania and New Jersey and have a targeted completion of 2023.

“Today’s announcement is a big step forward for families and businesses in eastern Pennsylvania and the Greater Philadelphia region who will finally benefit from greater access to low-cost natural gas, by separating the certificated PennEast route into two phases,” Anthony Cox, chair of the PennEast Pipeline Company Board of Managers, said. “In the years since the initial announcement of the Project, demand for natural gas has continued to grow, yet the benefits of new job creation, economic development, air quality, and lower energy bills have been denied to all customers by short-sighted political interests. Building the project in phases allows PennEast to meet the clear public need in the short term in Pennsylvania, and in the long term in New Jersey by affording sufficient time for permit and legal issues to be resolved.”

PennEast filed precedent agreements for 338,000 dekatherms per day (Dth/d) as part of Phase One. Additional precedent agreement negotiations are underway for a total capacity in Phase One of approximately 600,000 Dth/d, the company said, noting that the initial 1,107,000 Dth/d filed with FERC for the full project remains unchanged.

Under the phased approach, PennEast would have three delivery points within Pennsylvania: UGI Utilities, Inc. to serve the Blue Mountain Ski Resort and new interconnections with Columbia Gas and Adelphia Gateway to serve the southeast region of Pennsylvania.

“Pennsylvania families and businesses shouldn’t be pawns in a political game played in another state,” Gene Barr, president and CEO of the Pennsylvania Chamber of Business and Industry, said. “With key approvals at the federal and state level already, a phased approach for PennEast would allow Pennsylvania businesses to finally lower their energy costs, reduce carbon emissions and continue adding to their competitive advantage over nearby states like New Jersey. Pennsylvania’s business community urges swift approval by the Commission for this phased construction plan.”