An oil pipeline encircling Philadelphia gets a new life delivering shale gas

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A petroleum pipeline that encircles the Pennsylvania suburbs around Philadelphia will be converted to deliver natural gas from Bucks County to Marcus Hook under a $189 million deal announced Thursday between Talen Energy Corp. and New Jersey Resources Corp.

Talen, which is based in Allentown, is selling its Interstate Energy Co. LLC pipeline unit to Adelphia Gateway, LLC, a subsidiary of New Jersey Resources, which is based in Wall, N.J. The 84-mile underground pipeline was now delivers either oil or natural gas to two Talen power plants in Northampton County.

Adelphia Gateway plans to convert the southern 50-mile portion of the pipeline, which now transports oil in a northern direction, to transport gas southward to customers in Montgomery, Chester and Delaware Counties. Adelphia on Thursday launched an “open season” to solicit bids from potential new customers.

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The 18-inch diameter pipeline will connect with the Texas Eastern natural gas pipeline at an existing interchange near Rich Hill Road in Richland Township, Bucks County and would deliver up to 250,000 thousand cubic feet of gas a day, providing a substantial new source of gas to the region.

“Today, the Philadelphia market is constrained with limited access to affordable energy sources,” said Steve Westhoven, senior vice president of NJR Midstream, a subsidiary of New Jersey Resources. “With the Adelphia Gateway project, we look forward to applying our market expertise to serve customers and support economic development opportunities in the region.”

Adelphia Gateway plans to convert the southern 50-mile portion of the pipeline, which now transports oil in a northern direction, to transport gas southward to customers in Montgomery, Chester and Delaware Counties. Adelphia on Thursday launched an “open season” to solicit bids from potential new customers.

The 18-inch diameter pipeline will connect with the Texas Eastern natural gas pipeline at an existing interchange near Rich Hill Road in Richland Township, Bucks County and would deliver up to 250,000 thousand cubic feet of gas a day, providing a substantial new source of gas to the region.

“Today, the Philadelphia market is constrained with limited access to affordable energy sources,” said Steve Westhoven, senior vice president of NJR Midstream, a subsidiary of New Jersey Resources. “With the Adelphia Gateway project, we look forward to applying our market expertise to serve customers and support economic development opportunities in the region.”

Associated Press. (2017). The Inquirer – An oil pipeline encircling Philadelphia gets a new life delivering shale gas.
http://www.philly.com/philly/business/energy/an-oil-pipeline-encircling-philadelphia-gets-a-new-life-delivering-shale-gas-20171103.html

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