FERC works on application for big PennEast pipeline to serve northeast U.S.

The Federal Energy Regulatory Commission issued an Oct. 8 notice about a Sept. 24 application by PennEast Pipeline Co. LLC for authorization to construct and operate a new natural gas pipeline system, including pipeline facilities, a compressor station, metering and regulating stations and appurtenant facilities in Pennsylvania and New Jersey.

PennEast seeks authorization to construct, own and operate a new pipeline system comprising:

  • 114 miles of 36-inch diameter mainline transmission pipeline from Luzerne County, Pennsylvania, to Mercer County, New Jersey;
  • a 2.1 mile, 24-inch lateral in Northhampton County, Pennsylvania;
  • a 0.6 mile, 12-inch diameter lateral in Hunterdon County, New Jersey;
  • a 1.4 mile, 36-inch diameter lateral in Hunterdon County, New Jersey;
  • a 47,700 horsepower compressor station in Carbon County, Pennsylvania; and
  • various aboveground facilities, including interconnects, launchers, receivers and mainline block valves.

Said the application: “PennEast is a new interstate pipeline system designed to satisfy the growing natural gas transportation capacity needs of local distribution companies, electric generators, and end-users in eastern and southeastern Pennsylvania, New Jersey, New York and surrounding states, as well as producers located in close proximity to these markets. PennEast has entered into precedent agreements with seven foundation shippers and twelve total shippers, which together combine for a commitment of firm capacity of 990,000 dekatherms per day (‘Dth/d’).”

The target in-service date for the project facilities is Nov. 1, 2017.

PennEast has 12 shippers lined up for 90% of its capacity

The PennEast Project is a new greenfield pipeline project that will provide up to 1,107,000 Dth/d of new firm natural gas transportation capacity to the market on a year-round basis. The project accesses multiple upstream supply sources located at various receipt point interconnections in the eastern Marcellus region, including interconnections with Transcontinental Gas Pipe Line Co. LLC (Transco) and gathering systems operated by UGI Energy Services LLC, Williams Partners LP, and Energy Transfer Partners LP, all in Luzerne County, Pennsylvania.

The project extends from these receipt points to various delivery point interconnections in the heart of major northeastern natural gas-consuming markets, including interconnections with: UGI Central Penn Gas Inc. in Carbon County, Pennsylvania; UGI Utilities Inc. and Columbia Gas Transmission LLC in Northampton County, Pennsylvania; and Elizabethtown Gas, NRG REMA LLC, Texas Eastern Transmission LP and Algonquin Gas Transmission LLC in Hunterdon County, New Jersey.

The terminus of the project will be located at a delivery point with Transco in Mercer County, New Jersey. The PennEast Project consists of approximately 114 miles of 36-inch diameter mainline transmission pipeline originating in Luzerne County, Pennsylvania, and extending to Mercer County, New Jersey.

The project will also include three laterals: the approximately 2.1- mile, 24-inch diameter Hellertown Lateral in Northampton County, Pennsylvania; the approximately 0.6-mile, 12-inch diameter Gilbert Lateral in Hunterdon County, New Jersey; and the approximately 1.4-mile, 36-inch diameter Lambertville Lateral in Hunterdon County, New Jersey.

PennEast held an Open Season for the project in August 2014, and has executed long-term, binding precedent agreements with 12 shippers for approximately 90% of the firm transportation capacity to be created. Many of the project shippers are regional local natural gas distribution companies and end-users. The 12 shippers are:

  • New Jersey Natural Gas Co., 180,000 Dth/day, 15 year contract (primary term);
  • PSEG Power LLC, 125,000 Dth/day, 15 years;
  • Texas Eastern Transmission LP, 125,000 Dth/day, 15 years;
  • South Jersey Gas Co., 105,000 Dth/day, 15 years;
  • Consolidated Edison Co. of New York, 100,000 Dth/day, 15 years;
  • Pivotal Utility Holdings d/b/a Elizabethtown Gas, 100,000 Dth/day, 15 years;
  • UGI Energy Services LLC, 100,000 Dth/day, 15 years;
  • Cabot Oil & Gas Corp., 50,000 Dth/day, 10 years;
  • Talen Energy Marketing LLC, 50,000 Dth/day, 5 years;
  • Enerplus Resources (USA) Corp., 30,000 Dth/day, 5 years;
  • Warren Resources Inc., 15,000 Dth/day, 5 years; and
  • NRG Rema LLC, 10,000 Dth/day, 10 years.

To facilitate the project and to identify and address environmental and landowner concerns early in the certificate process, PennEast participated in the commission’s Pre-filing review process. Beginning in October 2014, PennEast has participated in more than 200 meetings with public officials and non-governmental organizations.

PennEast asked that FERC grant the needed authorizations by Aug. 1, 2016. An order by this date will allow for timely commencement of construction that is critical for PennEast to comply with seasonal construction limitations and still meet the project’s in-service date of Nov. 1, 2017.

PennEast is a joint venture owned by: a subsidiary of AGL Resources Inc. (20% interest); a subsidiary of New Jersey Resources (20% interest); a subsidiary of South Jersey Industries (20%); a subsidiary of UGI Energy Services LLC (20%); PSEG Power LLC (10%); and Spectra Energy Partners LP (10%). PennEast is managed by UGI Energy Services under a Project Management Agreement.

A company contact is: Anthony C. Cox, Project Manager, PennEast Pipeline Co. LLC, One Meridian Boulevard, Suite 2C01, Wyomissing, PA 19610, phone (610) 406-4322, acox@ugies.com.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.