Spectra Energy Partners LP (NYSE: SEP), an Enbridge Inc. company, has purchased a 10% stake in the $1.2 billion PennEast Pipeline, doubling its interest in a natural gas project that has been subject to intense environmental opposition.
“From its inception, we have viewed the PennEast Pipeline as a critical project for the mid-Atlantic, connecting abundant domestic supplies to growing local markets in need of additional clean natural gas,” said Bill Yardley, president of Spectra on March 13. “PennEast provides an opportunity to build upon our very strong footprint in the region.”
Spectra purchased the equity position from PSEG Power LLC, supplier of gas to its affiliate, Public Service Electric & Gas, which is New Jersey’s largest utility. PSEG will continue its commitment to buy 125 million cubic feet (MMcf) of the pipeline’s 1 Bcf capacity.