PennEast aims to complete the first phase of its 1.1 bcf/d (11.3 bcm/year) natural gas pipeline project between Pennsylvania, New Jersey, and New York, in 2022, despite legal and regulatory hurdles in Northeastern states. The company doesn't plan to acquire rights of way for the project due to pending actions in Pennsylvania.
The project, which originally intended to ship natural gas from the Marcellus Shale production area in Pennsylvania to markets in Pennsylvania, New Jersey, and New York, faced regulatory obstacles in New Jersey. Consequently, PennEast amended the permit, beginning with a first phase in Pennsylvania, which would be completed by 2022, and a second segment from Pennsylvania to New Jersey, with a targeted completion of 2023. The US$1bn pipeline was originally expected to be commissioned by the end of 2018 or in early 2019. In January 2018, the FERC granted a certificate of public convenience and necessity to the project. The FERC approved revised plans for the project in August 2020 and in June 2021, the US Supreme Court overturned a Third Circuit decision that blocked the company from using federal eminent domain rules to seize state-owned or controlled land in New Jersey.
Project developer PennEast is a joint company between NJR Pipeline Company, South Jersey Industries, Southern Company, Enbridge, and UGI, with 20% each.