Boston, MA 09/09/2014 (wallstreetpr) – According to reports, PennEast Pipeline; a joint project of New Jersey Resources, UGI Corp (NYSE:UGI) and South Jersey Industries has closed its binding open season for a proposed natural gas pipeline. This pipeline will be used to transport around 1 billion cubic feet per day natural gas to lit up around 4.7 billion homes in the northeast markets.
Who are the partners in this project:
The project PennEast Pipeline was started by AGL Resources, UGI Energy Services (UGIES) (subsidiary of UGI), South Jersey Industries and NJR Pipeline Company (subsidiary of New Jersey Resources). Due to the open season, PennEast Pipeline got around 965,000 dekatherms per day of binding bids, although out of the total binding bids, 485,000 dekatherms per day binding bids were committed by PennEast project affiliates and their sponsors. The project has gotten excellent support from the local shippers; therefore, it is getting impeccable support from people. UGI Corp (NYSE:UGI) is excited to finalize the project as soon as possible. While answering a question of expected timeline of finalizing this project, PennEast management said that all the agreements will be finalized this month for sure.
According to Peter Terranova, Chairman of the PennEast Pipeline Board of Managers, “The kind of support that we have got from this bidding shows the excessive need of natural gas along with reliable and safe transportation infrastructure.” He further said that PennEast had decided to bring low-cost Marcellus Shale gas to all the utility customers in New Jersey and Pennsylvania, so that they could get natural gas at least possible price.
The proposed pipeline will be established between Transco’s Trenton-Woodbury interconnection in New Jersey and Luzerne County in northeastern Pennsylvania. It is one of the game-changing steps taken by PennEast to provide natural gas at a very reasonable rate to all the people. One the basis of current support, it is likely to expand its service area in coming days.
