Public Service Enterprise Group Inc. (PSEG) is set to explore options of selling its 10% share in the US$1 billion, 110 mile 36 in. PennEast natural gas pipeline (PennEast). The pipeline is set to transport natural gas from the Marcellus Shale region to New Jersey.
As cited by New Jersey On-Line, Mike Jennings (a PSEG spokesperson) stated that the company wanted to focus on its core business – power plants.
While the company is looking to sell its share, as emphasised by Bill Levis, President of PSEG Power, PSEG will remain a customer of the gas pipeline if and when it starts delivering natural gas. Any such sale would be subject to approval by the PennEast board.
“This project will provide PSEG customers with greater and more reliable access to affordable natural gas,” he said. “We look forward to being a PennEast customer. We’ve decided to put our focus on our core business – constructing three new combined cycle power plants and running our diverse fleet of generation plants.”
According to news sources, company documents suggest that PSEG has invested approximately US$11 million in the project.
New Jersey Resources, South Jersey Industries, Southern Co., Spectra Energy Corp. and UGI Corp. remain partners in the PennEast project.
As reported by app.com, New Jersey Resources has commented, stating that the proposed pipeline will continue despite its partner looking to sell its share. It also emphasised that PSEG's possible withdraw does not signal that the project is failing.
Read the article online at: https://www.worldpipelines.com/business-news/10032017/pseg-looks-into-selling-penneast-share/