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Adelphia Gateway pipeline project near Philadelphia clears FERC staff review

An environmental review by Federal Energy Regulatory Commission staff cleared a project proposed by a New Jersey Resources Corp. unit that would let it acquire oil and natural gas pipeline facilities in Pennsylvania, build additional facilities in Pennsylvania and Delaware, and use the facilities for interstate gas transportation.

In the environmental assessment issued Jan. 4, FERC staff found that any commission approval of the proposal that included mitigation measures would not be a major federal action that would harm the environment.

Adelphia Gateway LLC submitted an abbreviated application for the project to FERC in January 2018. The facilities would include the existing 84-mile, 18-inch mainline running from Marcus Hook to the Martins Creek terminal in Lower Mount Bethel Township; the existing 4.5-mile, 20-inch mainline running from Northampton County, Pa., to the Martins Creek terminal; two new 5,625-horsepower compression facilities, the Marcus Hook compressor station and the Quakertown compression station; a new 4.5-mile lateral from the Marcus Hook compressor station to an interconnect with Texas Eastern Transmission LP and Philadelphia Electric Co.; and a new, shorter lateral to Delmarva Power & Light Co.

Adelphia filed an amendment in August 2018 asking to increase the capacity of a segment of a Pennsylvania pipeline that would carry Marcellus gas to the Philadelphia market. The request sought to increase the design capacity of its Zone North A segment from 175,000 Dth/d to 250,000 Dth/d, and adjust its rates given the change. The pipeline would also provide up to about 350,000 Dth/d in another northern zone and 250,000 Dth/d in a south zone.

Adelphia estimated the acquisition of the existing facilities and the construction of new facilities together would cost over $330 million as proposed before the amendment. The facilities would become the Adelphia Gateway pipeline. The existing facilities will continue to provide oil and gas to two power generation plants.

The acquired facilities would come from Interstate Energy Company LLC, which operates them for oil or gas transportation service that does not fall under the jurisdiction of FERC or the Natural Gas Act, but instead under the authorization of the Pennsylvania Public Utility Commission. As part of the application, Adelphia asked for approval of certain provisions in firm transportation service agreements with Lower Mount Bethel Energy LLC and Martins Creek LLC, firm shippers with long-term legacy commitments on the Interstate Energy facilities. Adelphia said it could expand service to gas consumers in Pennsylvania and the Northeast. (FERC docket CP18-46)