Families and businesses in eastern Pennsylvania and New Jersey
would have saved more than $890 million in energy costs had the
proposed PennEast Pipeline been in place during the
2013-2014 winter, according to a key finding from a
comprehensive energy market savings report and analysis released
today by Concentric Energy Advisors, Inc. and PennEast Pipeline
Company.
"The potential savings to energy users – our families, small
businesses, government facilities and many others – thanks to the
PennEast proposed capacity – is a game changer for the region,"
said Peter Terranova, chairman of the PennEast Pipeline board of
managers. "Imagine how the region could have benefited had nearly
$900 million been injected into other parts of our local economies
last winter? It is precisely why we are pursuing this project – to
help ensure reliability, stable energy prices and a local economic
boost."
The study, "Estimated Energy Market Savings From Additional
Pipeline Infrastructure Serving Eastern Pennsylvania and New
Jersey," examined what natural gas prices in the region that would
be served by PennEast could have been in the winter of 2013-2014 if
an additional 1 Bcf/day of pipeline capacity had been available.
Concentric evaluated the relationship between natural gas prices
that actually occurred in eastern Pennsylvania and New Jersey
relative to the natural gas demand experienced in the region each
day, and the impact that additional pipeline capacity could have
had by lowering natural gas prices from what otherwise
occurred.
Concentric examined four primary areas of potential savings
associated with additional pipeline infrastructure and lower
natural gas prices in eastern Pennsylvania and New Jersey: 1)
consumer savings associated with lower electric prices due to lower
fuel costs for natural gas-fired electric generation; 2) savings
due to natural gas electric generation displacing more costly
oil-fired electric generation; 3) savings by industrial customers
purchasing natural gas; and, 4) savings by customers of local
distribution companies. The biggest savings would have come from
lower electric prices due to the savings achievable by natural
gas-fired electric generation, where Concentric estimated electric
savings in excess of $400 million due to lower market area natural
gas prices.
"Additional natural gas pipeline capacity, such as proposed by
PennEast, has the potential to provide significant value to energy
consumers in eastern Pennsylvania and New Jersey by lowering
natural gas prices during high price periods," concluded
Concentric. Concentric's analysis focused on the winter of
2013-2014 since this period most accurately reflects the current
market dynamics, including the inclusion of Spectra 's New
Jersey‐New York Expansion project and Transco's Northeast Supply
Link – both completed in late 2013. The study also notes that
absent additional infrastructure, and with growing natural gas
demand, the high natural gas prices experienced in the winter of
2013-2014, as well as those this winter, will continue.
"The findings of Concentric's report underscore the enormous and
broad positive impacts of the proposed PennEast Pipeline,"
Terranova said. "When you combine the estimated economic impact of
$1.6 billion from construction with $23 million in annual
operations, and then add potential annual savings of nearly $900
million resulting from increased supply for the 2017-2018 winter,
PennEast's value to the region is easily more than $2
billion. This augments our long-term vision of continued
savings and support to the communities where we live and work."
The complete Concentric report is available at
penneastpipeline.com/ConcentricEconomicStudy. The
approximately 114-mile, 36-inch diameter PennEast Pipeline will
transport approximately one billion cubic feet of clean, natural
gas per day – enough to serve approximately 4.7 million homes. It
will run from Dallas, Luzerne County, in northeastern Pennsylvania,
to Transco's pipeline interconnection near Pennington, Mercer
County, New Jersey
About PennEast Member Companies:
AGL Resources www.aglresources.com
AGL Resources (NYSE:GAS) is an Atlanta-based energy services
holding company with operations in natural gas distribution, retail
operations, wholesale services and midstream operations. AGL
Resources serves approximately 4.5 million utility customers
through its regulated distribution subsidiaries in seven states.
The company also serves approximately 630,000 retail energy
customers and approximately 1.2 million customer service contracts
through its SouthStar Energy Services joint venture and Pivotal
Home Solutions, which market natural gas and related home services.
Other non-utility businesses include asset management for natural
gas wholesale customers through Sequent Energy Management and
ownership and operation of natural gas storage facilities. AGL
Resources is a member of the S&P 500 Index. For more
information, visit www.aglresources.com.
NJR Pipeline Company www.njresources.com
NJR Pipeline Company is a subsidiary of New Jersey Resources
(NYSE:NJR), a Fortune 1000 company that provides safe and reliable
natural gas and clean energy services, including transportation,
distribution and asset management. NJR Pipeline is part of NJR's
strong financial profile and ongoing commitment to invest in and
own midstream assets, including natural gas storage and
transportation pipelines. NJR's midstream assets are currently
comprised of a 5.53 percent stake in Iroquois Pipeline and a 50
percent stake in Steckman Ridge, a 12 Bcf storage field in south
central Pennsylvania, and now equity ownership in the PennEast
Pipeline.
Public Service Enterprise Group
www.pseg.com
Public Service Enterprise Group (NYSE:PEG) is a publicly traded
diversified energy company with annual revenues of $10 billion. Its
operating subsidiaries are: PSEG Power, Public Service Electric and
Gas Company (PSE&G) and PSEG Long Island.
South Jersey Industries
www.sjindustries.com
South Jersey Industries (NYSE:SJI), an energy services holding
company based in Folsom, NJ, operates its business through two
primary subsidiaries. South Jersey Gas, one of the nation's fastest
growing natural gas utilities, delivers clean, efficient natural
gas and promotes energy efficiency to over 365,000 customers in
southern New Jersey. SJI's non-regulated businesses, under South
Jersey Energy Solutions, promote efficiency, clean technology and
renewable energy by developing, owning and operating on-site energy
production facilities - including Combined Heat and Power, Solar,
and District Heating and Cooling projects; acquiring and marketing
natural gas and electricity for retail customers; providing
wholesale commodity marketing and risk management services; and
offering HVAC and other energy-efficiency related services.
Spectra Energy
Partnerswww.spectraenergypartners.com
Spectra Energy Partners, LP (NYSE:SEP) is a Houston-based master
limited partnership, formed by Spectra Energy Corp (NYSE:SEP). SEP
is one of the largest pipeline MLPs in the United States and
connects growing supply areas to high-demand markets for natural
gas, natural gas liquids, and crude oil. These assets include more
than 17,000 miles of transmission and gathering pipelines,
approximately 150 billion cubic feet of natural gas storage, and
approximately 4.8 million barrels of crude oil storage.
UGI Energy Services, LLC www.ugies.com
UGI Energy Services is a subsidiary of UGI Corporation
(NYSE:UGI). UGI Energy Services markets natural gas, electricity
and liquid fuels to approximately 19,000 residential, commercial,
industrial, institutional and government customers in nine states
and Washington, D.C. In addition, it stores and delivers natural
gas and generates electricity.
CONTACT: Pat Kornick
Mobile: (412) 780-4696
pkornick@penneastpipeline.com
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