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Released September 28, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Despite a favorable ruling by the U.S. Supreme Court earlier this summer, PennEast Pipeline is ceasing all further development its natural gas pipeline project amid further permitting hurdles in New Jersey.
"Although PennEast received a Certificate of Public Convenience and Necessity from FERC (U.S. Federal Energy Regulatory Commission) to construct the proposed pipeline and obtained some required permits, PennEast has not received certain permits, including a water quality certification and other wetlands permits under Section 401 of the Clean Water Act for the New Jersey portion of the project; therefore, the PennEast partners, following extensive evaluation and discussion, recently determined further development of the Project no longer is supported," company spokesperson Patricia Kornick said in an emailed statement on Monday. "Accordingly, PennEast has ceased all further development of the project."
With an estimated cost of about $1 billion, the 36-inch-wide pipeline would have delivered more than 1 billion cubic feet (Bcf) per day of Marcellus Shale gas from Luzerne County, in northeastern Pennsylvania, to Transco's pipeline interconnection near Pennington, New Jersey.
The project's member companies include UGI Energy Services, a subsidiary of UGI Corporation (NYSE:UGI) (King of Prussia, Pennsylvania). Other backers include Southern Company (NYSE:SO) (Atlanta, Georgia) and Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta).
The halt comes after the project won a case in the U.S. Supreme Court, which ruled 5-4 in late June that developers of federally approved natural-gas pipeline projects can use eminent domain powers to seize state-owned land. At issue was whether PennEast could use eminent domain to take 49 state-owned and state-controlled parcels of land in New Jersey that are needed for the project. New Jersey officials sought to block the pipeline by stopping PennEast from acquiring those parcels. FERC had approved the project in 2018. For related information, see June 30, 2021, article - PennEast Pipeline Project Clears Hurdle with Supreme Court Ruling.
Even so, the project continued to face opposition by environmental activists and New Jersey officials.
"For the last four years, my administration has fought back against the unnecessary construction of the PennEast Pipeline, which was wrong for New Jersey and would have destroyed acres of New Jersey's conserved land and threatened species," New Jersey Governor Phil Murphy said in a statement. "I welcome today's decision by PennEast to cease development on this project and am committed to protecting our state's natural resources and building a clean energy future that works for all New Jerseyans."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
"Although PennEast received a Certificate of Public Convenience and Necessity from FERC (U.S. Federal Energy Regulatory Commission) to construct the proposed pipeline and obtained some required permits, PennEast has not received certain permits, including a water quality certification and other wetlands permits under Section 401 of the Clean Water Act for the New Jersey portion of the project; therefore, the PennEast partners, following extensive evaluation and discussion, recently determined further development of the Project no longer is supported," company spokesperson Patricia Kornick said in an emailed statement on Monday. "Accordingly, PennEast has ceased all further development of the project."
With an estimated cost of about $1 billion, the 36-inch-wide pipeline would have delivered more than 1 billion cubic feet (Bcf) per day of Marcellus Shale gas from Luzerne County, in northeastern Pennsylvania, to Transco's pipeline interconnection near Pennington, New Jersey.
The project's member companies include UGI Energy Services, a subsidiary of UGI Corporation (NYSE:UGI) (King of Prussia, Pennsylvania). Other backers include Southern Company (NYSE:SO) (Atlanta, Georgia) and Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta).
The halt comes after the project won a case in the U.S. Supreme Court, which ruled 5-4 in late June that developers of federally approved natural-gas pipeline projects can use eminent domain powers to seize state-owned land. At issue was whether PennEast could use eminent domain to take 49 state-owned and state-controlled parcels of land in New Jersey that are needed for the project. New Jersey officials sought to block the pipeline by stopping PennEast from acquiring those parcels. FERC had approved the project in 2018. For related information, see June 30, 2021, article - PennEast Pipeline Project Clears Hurdle with Supreme Court Ruling.
Even so, the project continued to face opposition by environmental activists and New Jersey officials.
"For the last four years, my administration has fought back against the unnecessary construction of the PennEast Pipeline, which was wrong for New Jersey and would have destroyed acres of New Jersey's conserved land and threatened species," New Jersey Governor Phil Murphy said in a statement. "I welcome today's decision by PennEast to cease development on this project and am committed to protecting our state's natural resources and building a clean energy future that works for all New Jerseyans."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
