PennEast Pipeline Co. on Wednesday announced plans to build a $1 billion, 100-mile pipeline that would deliver Marcellus shale gas to markets in Pennsylvania and New Jersey. The pipeline will be designed with a capacity of up to 1 billion cubic feet per day. The cost will be shared among the four entities involved in the PennEast joint venture — AGL Resources, NJR Pipeline Co., South Jersey Industries and UGI Energy Services. The pipeline will begin in Luzerne County, Pa., and end at Transco’s Trenton-Woodbury interconnection in New Jersey. Pending regulatory approvals, construction will begin in the spring of 2017.
PennEast noted that natural gas prices in New Jersey were as high as $100 per dekatherm in some areas this past winter. Natural gas traded at a range of $3 to $4 per dekatherm in the areas to be tapped by the new pipeline.
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