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US FERC approves PennEast's new plan for its natural gas pipeline project

The US Federal Energy Regulatory Commission (FERC) has released a favourable environmental review for PennEast’s plan to divide the 1 bcf/d (10.3 bcm/year) natural gas pipeline project in two phases, considering that it would not significantly affect the environment. 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 proposed to amend the permit and begin with a first phase in Pennsylvania, which would be completed by end-2021 and a second segment in New Jersey, with a targeted completion of 2023. The US$1bn pipeline was originally expected to be commissioned by end-2018. In January 2018, the FERC had granted a certificate of public convenience and necessity to the project. Project developer PennEast is a joint company between NJR Pipeline Company, SJI Midstream, Southern Company Gas, Spectra Energy Partners and UGI Energy Services, with 20% each.