WALL, N.J. – Today, the Federal Energy Regulatory Commission (FERC) issued a Certificate of Public Convenience and Necessity for the Adelphia Gateway project and affirmed the need for reliable pipeline infrastructure to serve constrained markets.
“We are pleased FERC approved the Adelphia Gateway project and issued a Certificate of Public Convenience and Necessity,” said Steve Westhoven, President and Chief Executive Officer of New Jersey Resources, the parent company of Adelphia Gateway. “This is a critical next step in our efforts to provide clean, low-cost natural gas to customers in the Greater Philadelphia region.”
The Adelphia Gateway project will convert 50 miles of an existing 84-mile pipeline from oil to natural gas. The northern 34 miles of the pipeline were previously converted to deliver natural gas in 1996. After the purchase of Interstate Energy Company and the existing pipeline from Talen Generation, LLC are finalized, the northern zone will continue to operate to serve two natural gas-fired generation facilities in Lower Mount Bethel Township, PA. Once all the necessary regulatory approvals are obtained, work to convert the lower 50 miles of the pipeline from oil to natural gas will begin.
Adelphia Gateway currently expects work to be complete and the project to be placed into service in 2020. The natural gas supply delivered through the Adelphia Gateway pipeline will serve customers in the Greater Philadelphia area and is estimated to provide economic benefits of approximately $677 million over the first 15 years it is in service.
The pipeline will supply natural gas to Kimberly-Clark’s mill in Chester, PA, enabling the global personal care company to replace its existing on-site coal-fired co-generation power plant. By switching to a natural gas-fired generation power plant, Kimberly-Clark expects to reduce its greenhouse gas emissions from the facility by 50 percent.
The FERC process is designed to determine public convenience and necessity for the construction or extension of natural gas facilities. As part of the application review, FERC evaluates a variety of factors, such as market demand, environmental impact and safety. FERC Staff previously completed an Environmental Assessment (EA) of the Adelphia Gateway project, citing its design poses no significant environmental impact and is the preferred path forward for the project.
About Adelphia Gateway, LLC
Adelphia Gateway, LLC will repurpose existing infrastructure to provide consumers in southeastern Pennsylvania with additional access to affordable, locally produced natural gas. The project will convert 50 miles of an existing 84-mile pipeline in eastern Pennsylvania from oil to natural gas. Adelphia Gateway 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, asset management and home services. For more information, visit www.adelphiagateway.com or follow us on Twitter @AdelphiaGateway
Forward-Looking Statements: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. New Jersey Resources Corporation (NJR) cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond NJR’s ability to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants. Words such as “anticipates,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “believes,” “should” and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management’s current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon NJR. There can be no assurance that future developments will be in accordance with management’s expectations, assumptions and beliefs or that the effect of future developments on NJR will be those anticipated by management. Forward-looking statements in this press release include, but are not limited to, certain statements regarding the Adelphia Gateway project, the timetable for the project’s completion, and its future customers and operations. Additional information and factors that could cause actual results to differ materially from NJR’s expectations are contained in NJR’s filings with the U.S. Securities and Exchange Commission (SEC), including NJR’s Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings, which are available at the SEC’s web site, http:.//www.sec.gov. Information included in this earnings release is representative as of today only and while NJR periodically reassesses material trends and uncertainties affecting NJR’s results of operations and financial condition in connection with its preparation of management’s discussion and analysis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, NJR does not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events.