New Jersey gas utility takes delayed PennEast pipeline out of financial outlook through 2024

first_imgNew Jersey gas utility takes delayed PennEast pipeline out of financial outlook through 2024 FacebookTwitterLinkedInEmailPrint分享Natural Gas Intelligence:New Jersey Resources Corp. (NJR) has pulled the PennEast Pipeline from its financial growth projections through 2024, citing ongoing delays that have plagued the natural gas project.“PennEast is an important project for the Northeast,” said NJR CEO Stephen Westhoven during the analyst day in late November. “But uncertainty around an in-service date requires us to take this action.” He noted that the company remains committed to the pipeline, adding that the project could eventually offer upside for cash flow if it does move forward.Through subsidiary NJR Pipeline Co., the company holds a 20% stake in the project. PennEast is one of the last major Appalachian greenfield pipeline projects fighting for completion as the natural gas industry’s opponents step up their efforts to halt gas infrastructure with increasing success in the Northeast.NJR subsidiary New Jersey Natural Gas Co. is among the project’s largest customers with 180 MMcf/d of capacity secured on the line. Capital expenditures, Westhoven said, would be “prudent and minimal” as the project works toward approval and construction. While 90% of NJR’s future projected earnings are expected to be generated by utility New Jersey Natural Gas and subsidiary Clean Energy Ventures, Westhoven said the company was forced to exclude PennEast given the inability to “see exactly when construction and commercial operation would take place.”New Jersey Gov. Phil Murphy’s administration has resisted the project. As hurdles mounted, PennEast earlier this year laid out a plan to build the pipeline in two phases. Construction on the first 68 miles entirely within Pennsylvania is expected to start next year. The pipeline would originate at a point near shale fields in the northeastern part of the state to a terminus in Northampton County. The second phase would include the remaining route that would stretch into New Jersey.About one-third of PennEast would be built in New Jersey’s Hunterdon and Mercer counties. It’s been in the works for roughly five years and has battled New Jersey at other turns, where it has also yet to secure key regulatory approvals. The system would move more than 1 Bcf/d of Appalachian natural gas into New Jersey and parts of Pennsylvania.[Jamison Cocklin]More: New Jersey Resources pulls PennEast natural gas pipe from projections as delays persistlast_img

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