In the first of two announcements this week, PennEast Pipeline LLC and UGI Energy Services (ticker: UGI) announced plans to build a 100 mile, $1 billion 30-inch gas pipeline from Pennsylvania and New Jersey to take Marcellus gas production to market. The PennEast pipeline is designed to take 1 Bcf of natural gas per day, which can supply gas to the equivalent of 4.7 million homes. UGI is operator of the pipeline and said that the project serves to meet growing demand in the mid-Atlantic marketplace.
PennEast is a joint project of AGL Resources (ticker: GAS), NJR Pipeline Company, a subsidiary of New Jersey Resources (ticker: NJR), South Jersey Industries (ticker: SJI), and UGI Energy Services, a subsidiary of UGI Corporation.
Separately, Columbia Pipeline Group, a unit of NiSource Inc. (NYSE: NI), announced a total of $1.75 billion in new investment in pipeline infrastructure that will enable it to transport up to 1.5 billion cubic feet per day (Bcf/d) of natural gas from Marcellus and Utica production areas.
Columbia’s Ohio and West Virginia pipeline, the Leach XPress project, is supported by long-term firm service agreements with Range Resources – Appalachia LLC (ticker: RRC), Noble Energy, Inc. (ticker: NBL), Kaiser Marketing Appalachian LLC, and American Energy Utica – LLC. The project, which involves construction of approximately 160 miles of pipeline, compression and related facilities on Columbia Transmission’s system, will provide access to multiple Marcellus and Utica receipt points and establish a substantial new header system serving the heart of the Appalachian supply basin.
Columbia Gulf’s Rayne XPress project primarily involves the addition of compression to Columbia Gulf’s existing pipeline facilities to provide transportation of over 1.0 Bcf/d for the project shippers. Columbia expects construction of both projects to start in the fourth quarter of 2016 and targets for them to be online in the second half of 2017, pending regulatory approvals.
[sam_ad id=”32″ codes=”true”]
Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. The company or companies covered in this note did not review the note prior to publication. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.