The design and construction of the PennEast Pipeline will generate
approximately $1.6 billion in additional wages, revenues and
investments to regional and state economies of Pennsylvania and New
Jersey, according to a new Drexel University study released today.
"PennEast Pipeline Project Economic Impact Analysis,"
co-authored by Econsult Solutions, finds that the proposed project
would have a major, positive impact on the economies of the two
states in which it would be built and operated.
According to researchers, design and construction of the
PennEast Pipeline would support approximately 12,160 jobs and an
associated $740 million in wages. Additionally, the ongoing
operation of the pipeline would generate approximately $23 million
in annual economic impact, supporting 98 jobs with $8.3 million in
wages. Even greater economic impact from ongoing operations would
be realized from the new supply of natural gas to PennEast
customers in the Pennsylvania and New Jersey markets.
"Drexel's analysis illustrates the substantial economic benefit
of the PennEast Pipeline," said Peter Terranova, chairman of the
PennEast Pipeline board of managers. "As a large infrastructural
improvement project, it will support thousands of jobs and generate
more than a billion and a half dollars of economic activity in
Pennsylvania and New Jersey. The sustained long-term value of
PennEast also would be realized in the form of lower energy bills
to consumers."
"This project will deliver what our region is most sorely in
need of: jobs," said Fred Potter, president of Teamsters Local
Union 469 in New Jersey. "This project will put several
hundred New Jersey tradesmen to work at a time when our economy is
dependent on getting people back to work."
Key findings from the analysis include:
- The design and construction of the project will require an
investment of $1.19 billion by PennEast through the end of
2017.
- The majority of the direct expenditures will be in Pennsylvania
and New Jersey, with some materials and labor sourced from other
states.
- The multi-year construction phase of the project is expected to
result in direct, indirect and induced economic impact of $1.6
billion and associated 12,160 jobs in Pennsylvania and New Jersey;
the six-county region of the project is expected to recognize the
majority of this impact.
- The ongoing operations of the project will generate an annual
expenditure of $13.2 million by PennEast, resulting in an expected
$23 million in annual economic impact and supporting 98 jobs; the
six-county region of the project is expected to recognize the
majority of this annual impact.
- The study focuses on the supported workforce resulting from the
project and its estimated contribution of more than $17.5 million
in personal income taxes during construction. Significant
other federal, state and local taxes also would be generated,
though not quantified in the report.
- Numerous industries would benefit from the construction and
on-going operations of the pipeline, including professional
services and retail establishments.
"Using detailed construction and operations budget projections,
our team designed a model to estimate the economic impact the
design and construction activity, as well as ongoing pipeline
operations, would generate," said Stephen Mullin, president of
Econsult Solutions.
"We find that the immediate construction and labor impacts
of the PennEast Pipeline Project are substantial and would greatly
benefit local communities through construction, labor and project
management jobs," said Vibhas Madan, professor of economics at
Drexel University LeBow College of Business. "Construction
and ongoing operations of the project would be economically
beneficial to the counties the pipeline would cross, as well as to
both states as a whole. Lower energy bills lead to an increase in
disposable income for consumers, allowing for additional spending
in the economy. For instance, we estimate that every $10 million in
increased disposable income, derived from lower energy prices,
would generate a total economic impact of $13.5 million and support
90 jobs."
The complete economic impact analysis is available at
penneastpipeline.com/economic-impact-analysis/. The
approximately 110-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.
"The PennEast Pipeline will provide affordable energy and
security for years to come benefitting, families, manufacturers and
power generators," said Terranova. "We're extremely excited to
better understand the overall economic benefits the region will
realize due to this project."
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 Partners
www.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 30,000 business, commercial,
industrial, institutional and government customers in nine states
and Washington, DC. In addition, it stores and delivers natural gas
and generates electricity. The UGI name has been known in the
region for more than 130 years and is an integral part of the
community. Its name is a brand built on a solid reputation for safe
and reliable distribution of natural gas. UGI prides itself on
being an active and responsible member of the community.
CONTACT: PennEast Contact: Pat Kornick
Mobile: (412) 780-4696
pkornick@penneastpipeline.com
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