NJNG to Withdraw Financial Support to PennEast- Another Setback for Pipeline

The COO of NJNG, Mr. Westhoven made a statement in their quarterly report that his company had lost confidence in any ability to forecast an outcome for the PennEast project. Stating, “NJR remains committed to the PennEast project, but we’re removing [it] completely from our financial projections. PennEast is an important project for the Northeast. The uncertainty around an in-service state requires us to take this action. CapEx spend will continue to be prudent and minimal as the project works towards approval and construction.” NJNG’s quarterly report also shows that they don’t expect PennEast to happen for at least 4 years if anything.

“NJNG pulling back on funding for the PennEast pipeline is another setback. When a partner is holding up financial support and takes the project out of its capital plan for 4 years, it shows the pipeline may be in trouble. This is one of the series of setbacks showing that we are gaining momentum to stop this project. It could unravel more partners to drop out, however that has not happened yet. NJNG may be able to work around this by finding an alternative. That is why we need to fight and keep on fighting, whether it’s for 4 more years,” said Jeff Tittel, Director of the New Jersey Sierra Club. “Every time we have a delay and slow down a bad project it’s a win. We still have to keep fighting on different fronts. The DRBC can turn down the pipeline, DEP needs to turn down it’s 401 permit and the Supreme Court still has to take on the eminent domain issue.”

In June, the U.S Supreme Court did not issue a decision on whether they will consider a request by PennEast to allow the use of eminent domain to acquire properties belonging to the state of New Jersey along the pipeline’s route. The Supreme Court instead issued an order asking the Justice Department’s solicitor general to file briefs in the case.

“NJNG may be able to work around this by finding an alternative like the Adelphia or Williams pipeline. NJNG are continuing to move forward with their SRL pipeline too. The fight continues at the Supreme Court and the DRBC.  PennEast still needs to apply for permits from the DRBC and New Jersey can still stop them using the 401 Certificate, Endangered Species, Wetlands, Stream Encroachment, and other permits,” said Tittel. “PennEast is trying to use eminent domain to acquire properties belonging to the state of New Jersey along the pipeline’s route. The Supreme Court is asking input from the Trump Administration and solicitor general whether or not to consider PennEast’s request. FERC has already designated PennEast’s authority to do so against a private entity.”

Phase 2 would consist of the remainder of the certificated facilities from approximate MP 68.2 to MP 114 and would include the third compressor unit at the Kidder Compressor Station. Proposed Phase 2 facilities are located in Northampton and Bucks Counties, Pennsylvania, and Hunterdon and Mercer Counties, New Jersey.

“We need other agencies like the DRBC to step up and deny PennEast’s application. BRBC needs to understand that PennEast is playing games by splitting the project into two segments DRBC also needs to have public hearings for the different permits related to wetlands, site restoration, post-construction stormwater management, and HDD water withdrawal and discharge,” said Tittel. “This project will have major environmental impacts. It will cross countless important streams, impact water quality, bulldoze forests, release a tremendous amount of greenhouse gases, and will cut an ugly scar through the Delaware River Basin. This pipeline would threaten the entire Delaware River Valley, including 98 acres of wetlands, over 44 miles of forest, and 88 waterways; over 1,600 acres total.”

In their financial quarterly report, NJNG stated, “The SRL is making great progress. Our current plans expect completion of the project during 2021…We expect a rate-based compound annual growth rate of more than 11% as we complete several of our major infrastructure and IT-related capital projects like the Southern Reliability Link.”

“They are supposed to get gas for SRL from the Penneast pipeline. No matter what NJNG says in their statement, they are still going to try to push Penneast forward. We have to remain vigilant because NJNG are confident that the SRL pipeline will be completed by next year. This is especially concerning since the DEP reinstated its permits last month despite us being in court fighting them. Both of these projects will destroy environmentally sensitive areas, increase our greenhouse gases, and endanger public health,” said Jeff Tittel, Director of the New Jersey Sierra Club. “We have been fighting the PennEast pipeline for 6 years and it looks like it will be delayed for another 4 years. We will continue to fight this project for 10 years, or no matter how long until we stop it.”