PennEast seeks federal approval to build $1B natural gas pipeline in two phases

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PennEast Pipeline Co. LLC of Wyomissing is seeking federal approval to build a natural gas pipeline between Pennsylvania and New Jersey in two phases.

Pending approval from the Federal Energy Regulatory Commission, the $1 billion project, the first part would consist of 68 miles of 36-inch pipe constructed entirely within Pennsylvania and would be ready to deliver natural gas by November 2021. The second portion would include the remaining route in Pennsylvania and New Jersey, with a targeted completion date of 2023, according to a news release.

PennEast first introduced plans to build the pipeline along a 120-mile route through Pennsylvania and New Jersey in August, 2014. Since that time, the project has faced several regulatory hurdles.

If built, the pipeline would run from Luzerne County through Carbon and Northampton counties and eventually into western New Jersey, ending in Hopewell Township, Mercer County.

Under the phased approach, PennEast will have three delivery points within Pennsylvania: UGI Utilities, Inc. (to serve the Blue Mountain Ski Resort) and new interconnections with Columbia Gas and Adelphia Gateway to serve the growing demand in the southeast region, according to PennEast.

“PennEast has always been vital to fulfilling our plans of a new hotel and water park, which have been delayed for years without the natural gas necessary to fuel the expansion,” said Barb Green, president of Blue Mountain Resort in Lower Towamensing Township, Carbon County, in a news release. “The announcement today to complete the project in phases is a major boost for our local tourism, economic development and job creation.”
PennEast said there are no new private property owners affected by the first phase of the project, which would terminate in Bethlehem Township, Northampton County. The new interconnections, which will be south of Route 22 and west of Route 33, will be constructed on property already owned by PennEast.

The company also will petition the U.S. Supreme Court to review a September decision by the United States Court of Appeals for the Third Circuit that blocked the project. The petition is due Feb. 4, the company said.

“This looks like a desperate attempt to build something – anything – in pursuit of the excessive profits that FERC guarantees for such projects,” said Tom Gilbert, campaign director of the nonprofit New Jersey Conservation Foundation of Far Hills, in a statement. “We will keep working with affected landowners, citizens, elected officials and public interest groups to oppose this project in New Jersey and Pennsylvania because it is a grave threat to our environment, communities and clean energy future.”