PennEast to End Development of Pennsylvania-New Jersey Natural Gas Line


A gas pipeline in Chino Hills State Park, California, United States, April 21, 2021. REUTERS / Lucy Nicholson

Sept. 27 (Reuters) – PennEast Pipeline announced Monday that it would cease development of the pipeline it planned to build between Pennsylvania and New Jersey because the project had not yet received all required permits.

Although PennEast received federal approval to build the pipeline in 2018, the company said it still had not received certain permits, including New Jersey’s water quality certification.

“PennEast partners, following extensive evaluation and discussions, recently determined that further development of the project is no longer supported,” PennEast said in an email, noting that it ” had ceased any further development of the project “.

PennEast is one of many pipeline projects in the Northeastern United States that have been blocked by state regulators in recent years. Others include Williams Cos Inc’s (WMB.N) Northeast Supply Improvement from Pennsylvania to New Jersey and New York, and the Pennsylvania Constitution to New York. Read more

Energy analysts have warned that gas could soon be trapped in the Appalachian Shale region unless energy companies build bigger pipes.

As late as August, PennEast said it still hopes to complete the first phase of the $ 1.2 billion Pennsylvania pipe in 2022. read more

PennEast partners decided to halt development even though the project won a United States Supreme Court ruling in June that overturned a lower court ruling preventing PennEast from using federal rules in the prominent domain. to seize land owned or controlled by the State of New Jersey. Read more

PennEast had hoped to complete the project in 2019 after obtaining federal approval from the U.S. Federal Energy Regulatory Commission (FERC) in January 2018.

The 120-mile (193-kilometer) pipe was designed to deliver 1.1 billion cubic feet per day of Marcellus shale gas to customers in Pennsylvania and New Jersey.

PennEast partners include units from New Jersey Resources (NJR.N), South Jersey Industries (SJI.N), Southern Co (SO.N), Enbridge Inc (ENB.TO) and UGI Corp (UGI.N).

Reporting by Scott DiSavino; Editing by Jonathan Oatis and Bill Berkrot

Our standards: Thomson Reuters Trust Principles.

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