After incorporating feedback from landowners, public officials, regulators and other stakeholders over the past three years as part of a concerted effort to include community input and reduce environmental impacts, the Federal Energy Regulatory Commission (FERC) recognized the need for the PennEast Pipeline and issued an order under section 7(c) of the Natural Gas Act approving its construction.
The approval came two weeks after a severe regional cold spell that forced natural gas prices in New Jersey to skyrocket 31 times above the low-cost gas supplies PennEast will access.
The approximately 120-mile pipeline route begins in the Marcellus Shale production area near Dallas, Pennsylvania, and connects with the existing underground Transcontinental Pipeline near Pennington, New Jersey. The route includes 24 municipalities in Pennsylvania and six in New Jersey.
The need for the PennEast Pipeline is clear. Access to additional natural gas supplies via PennEast Pipeline will reduce the cost of gas in eastern Pennsylvania and New Jersey, even during non-peak periods. Natural gas prices in the market areas worsen during periods of peak demand, such as a sustained cold snap.
One preliminary estimate found during a 10-day period alone, the PennEast Pipeline would have saved the region more than $300 million if it had been in service in November as originally contemplated. Even during non-peak periods, such as October, prices in New Jersey were triple those in Pennsylvania.
Since 2005, natural gas use has more than doubled in New Jersey and increased five-fold in Pennsylvania for electric generation. As a result, carbon emissions are dropping to their lowest level in nearly three decades, while air quality has improved across the region.
The PennEast Pipeline Co. Updated its estimated in-service date to 2019, with construction still beginning in 2018.
For more information, visit www.penn eastpipeline.com, call (844) 347-7119 or email answers@penneastpipeline.com
