PennEast Pipeline announced it will end development of its proposed 120-mile long pipeline from Pennsylvania to New Jersey after it was unable to receive the permits needed for the project.
PennEast said on Monday that despite receiving a number of the permits it needed for the $1.2 billion project, including a Certificate of Public Convenience and Necessity from the Federal Energy Regulatory Commission (FERC), the project failed to secure water quality certification and other wetland permits.
“Therefore, the PennEast partners, following extensive evaluation and discussion, recently determined further development of the project no longer is supported,” a spokesperson with PennEast wrote in an email to the Central Penn Business Journal on Monday. “Accordingly, PennEast has ceased all further development of the project.”
The PennEast Pipeline was to run from Dallas, Pennsylvania, to Pennington, New Jersey with about one-third of the route located in New Jersey. It was designed to transport 1.1 billion cubic feet per day of natural gas from Pennsylvania.
PennEast has proven controversial since it was first announced in 2014, with many residents in the path of the pipeline and environmental advocates fighting the construction of the project, citing how it would have crossed 88 waterways and 42 parcels of state-owned conservation lands.
“PennEast’s cancelation of this unneeded, dangerous fracked gas pipeline is a momentous win for the communities that have fought hard for years to defend their property and the environment,” said Otis Minott, executive director and chief counsel of the Philadelphia-based Clean Air Council.
Despite the positive approval from activists, the effects of the canceled project will have widespread effects on trade, ratepayers and more, said Gene Barr, CEO and president of the Pennsylvania Chamber of Business and Industry in Harrisburg.
“Let’s be clear: this is no victory – not for ratepayers, who are now lacking a reliable source of gas and electricity; not for the economy, which is now out several thousand well-paying construction jobs at a time when the economy continues to struggle; and not for the environment, as this obstruction results in the mid-Atlantic being more reliant on imported fuels from foreign nations that do not have our strict environmental standards,” said Barr. “It is no victory that Russian-sourced gas has been imported into Boston harbor in recent winters.”
The PennEast pipeline was initially planned for completion by 2019 but was pushed forward into 2022.
Partners on the project included New Jersey Resources, South Jersey Industries, Southern Co., Enbridge Inc., and UGI Corp.
The project passed a significant hurtle in June after the U.S. Supreme Court overturned a Third Circuit Ruling that looked to block the project from using federal eminent domain rules to seize New Jersey state-owned land.
Following the decision, Anthony Cox, chair of the PennEast Board of Managers said that the ruling would help the project provide affordable, reliable energy to families and businesses.
“This decision is about more than just the PennEast project; it protects consumers who rely on infrastructure projects – found to be in the public benefit after thorough scientific and environmental reviews – from being denied access to much-needed energy by narrow state political interests,” said Cox. “PennEast understood that New Jersey brought this case for political purposes, but energy crises in recent years in California, Texas, and New England, have clearly demonstrated why interstate natural gas infrastructure is so vital for our way of life, public safety, and enabling clean energy goals.”