FERC Issues Certificate of Public Convenience and Necessity for Adelphia Gateway Project

12/20/19

(Wall, NJ) 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.

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