ReThink Energy NJ has released the following statement in response to Enbridge Inc. (formerly Spectra Energy Corp.) confirming that it has entered into an agreement to purchase PSEG’s 10% share in the PennEast pipeline:
“Spectra’s move to acquire PSEG’s share in PennEast will enable it to further increase its exorbitant profits by building an unneeded pipeline on the backs of consumers,” said Tom Gilbert, Campaign Director, ReThink Energy NJ and NJ Conservation Foundation.
“If there were a real need for PennEast, we would expect companies not already involved in this self-serving, profit-making scheme to be knocking down the door to purchase PSEG’s share. Instead, Enbridge/Spectra will buy it, reinforcing the self-dealing nature of the project and the fact that there is no evidence of public need for it,” Gilbert added.
“PSEG’s sale of its stake in the PennEast pipeline is a reflection of the intense and growing opposition in New Jersey,” Gilbert continued. “This opposition will intensify in the coming months, leading to further delays and defeat of this dangerous, unneeded pipeline.”
Enbridge/Spectra will now own 20% of the project, while their affiliate will take 15% of the capacity. That means that 100% of the project will be owned by five companies, and those companies’ affiliates will use 88% of the capacity within 10 - 15 years.
NJ Rate Counsel has criticised PennEast’s self-dealing ownership structure, calling PennEast unfair to ratepayers. Energy experts also call PennEast a new form of market abuse that could lead to more unneeded, inefficient pipelines.
Read the article online at: https://www.worldpipelines.com/business-news/14032017/enbridge-doubles-its-share-in-the-penneast-pipeline-project/