PennEast to build $1-billion Marcellus pipeline

PennEast Pipeline Co. LLC plans to construct a $1-billion, 100-mile pipeline extending from Luzerne County in northeastern Pennsylvania to Transco’s Trenton-Woodbury interconnection in New Jersey.

The company says the pipeline would transport as much as 1 bcfd of gas produced in the Marcellus shale to Pennsylvania and New Jersey. Construction could begin in 2017.

PennEast will begin preliminary engineering studies in the coming months, along with a formal application for the US Federal Energy Regulatory Commission.

“This project serves to meet that growing demand in the Mid-Atlantic marketplace, while providing greater system resiliency and reliability for local utilities,” said John Walsh, UGI Corp. president and chief executive officer.

UGI Corp. unit UGI Energy Services (UGIES) is the project manager for the development of the project and will operate the pipeline.

Partners in the PennEast project include AGL Resources, New Jersey Resources subsidiary NJR Pipeline Co., South Jersey Industries, and UGIES.

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