Spectra Energy Partners purchases PSEG equity position in the PennEast interstate natural gas pipeline project

Published on June 12, 2017 by Daily Energy Insider Reports

PennEast Pipeline Company, LLC recently approved the final purchase and sale agreement, allowing Spectra Energy Partners to purchase PSEG Power, LLC’s 10 percent minority equity position in the PennEast interstate natural gas pipeline project.

Spectra Energy Partners is an Enbridge company, while PSEG Power is a subsidiary of Public Service Enterprise Group Inc.

PSEG Power is PennEast’s second largest customer and remains committed to its 125,000 Dth/day contracted capacity on the project. Spectra is now a 20 percent equity partner.

“We’re pleased with PennEast’s progress and are excited to have Spectra Energy Partners, with its
extensive experience in the region, become an equal equity partner,” Dat Tran, chairman of the board of managers for PennEast, said. “With respect to PSEG, we look forward to continue working with them as a PennEast customer.”

The 36-inch, underground pipeline is a nearly $1 billion investment and will transport natural gas 120 miles from Dallas, Luzerne County, in northeastern Pennsylvania, to Transco’s pipeline interconnection near Pennington, Mercer County, New Jersey.

“From its inception, we have viewed the PennEast Pipeline as a critical project for the mid-Atlantic, connecting abundant domestic supplies to growing local markets in need of additional clean natural gas,” Bill Yardley, president of Spectra Energy Partners, said. “PennEast provides an opportunity to build upon our very strong footprint in the region.”

Pending regulatory approval, construction on the project is expected to begin in 2018 and take approximately seven months to complete.