PennEast Oct. 22nd Week In Review

October 22, 2016

economic_impact

A Recap of PennEast and Important Natural Gas News

This week Concentric Energy Advisors released a comprehensive rebuttal reaffirming the need for the PennEast Pipeline, and rejected multiple arguments and incorrect assumptions made by the New Jersey Division of Rate Counsel.

On Tuesday, PennEast spokesperson Pat Kornick appeared on New Jersey 101.5 to provide a Project update, and discuss the need for PennEast with host Bill Spadea.

Additionally, in a Thursday presentation to the Federal Energy Regulatory Commission, the world’s largest wholesale electricity market operator – PJM – cited PennEast as a project that “would expand capacity and supply options and improve grid reliability.”

Also this week, Center for a New American Security (CNAS) released a white paper discussing “An Energy Policy Strategy for the Next President.” CNAS highlighted the need to “prioritize modernization of energy infrastructure as an urgent national policy,” and stressed the environmental and economic benefits of developing and utilizing America’s oil and gas resources.

In a Transportation and Infrastructure Daily news story, Sgt. Maj. Paul Chevalier (Ret.) commented on America’s “oil and gas energy renaissance, stating, “Forget about the direct benefits of abundant oil and natural gas, such as lower prices and cleaner air. Just think about the millions of Americans who would have lost their jobs had that energy just stayed in the ground.”

Jack Gerard, president and CEO of the American Petroleum Institute, offered similar sentiments in a Philadelphia Inquirer editorial.

“Our pipeline system delivers energy at a 99.99 percent safety rate, but it was largely designed to move imported energy from the coasts to points inland. Updating infrastructure to keep pace with new production presents a shovel-ready jobs bonanza that does not rely on taxpayer dollars,” said Gerard.

Read these and other stories below:

World’s Largest Wholesale Electricity Market Operator Cites PennEast Pipeline as Viable Option to Increase Energy Reliability and Stability
On October 20, 2016, the world’s largest wholesale electricity market operator delivered to FERC a presentation underscoring the need for additional natural gas transmission — specifically citing PennEast Pipeline as an example of a project that will bring additional grid reliability and supply options.

Independent Report Reaffirms Need for PennEast Pipeline
In comments filed with the Federal Energy Regulatory Commission (FERC) in September, the NJDRC questioned the need for the PennEast Pipeline and its cost recovery rate. In a rebuttal filed today with FERC, Concentric noted that the “NJDRC comments demonstrate a lack of understanding of how local distribution companies contract for pipeline capacity and make a number of incorrect assumptions.” Concentric also noted that the NJDRC relies on “improper analysis” and in some cases, “completely contradicts [its own] conclusion.”

PennEast fights back against state’s criticism of pipeline (MyCentralJersey.com)
But Concentric Energy Advisors, in a report prepared for PennEast, said the [New Jersey Division of Rate Counsel’s] “comments demonstrate a lack of understanding of how local distribution companies contract for pipeline capacity and make a number of incorrect assumptions.” The study also said that the agency relied on “improper analysis” and in some cases, “completely contradicts [its own] conclusion.”

Analysts: Oil and gas boom has been ‘miraculous’ for the U.S. (TI News Daily)
The benefits brought to America by the oil and gas energy renaissance are “miraculous”, a former Marine Corps sergeant major and volunteer chairman of New Hampshire’s Vets4Energy chapter said. “The vocal minority screaming ‘keep it in the ground’ doesn’t appreciate the importance that a strong economy plays in our national security,” Sgt. Maj. Paul Chevalier (Ret.) told TI News Daily.

Commentary: U.S. energy revolution must continue (Philly.com)
Infrastructure to transport energy to homes and businesses is another necessity to keep oil and natural gas reliable and affordable. Our pipeline system delivers energy at a 99.99 percent safety rate, but it was largely designed to move imported energy from the coasts to points inland. Updating infrastructure to keep pace with new production presents a shovel-ready jobs bonanza that does not rely on taxpayer dollars.

Here’s the right recipe to make Pa. energy independent: J. Winston Porter (PennLive.com)
There are four key components of America’s electrical energy mix, namely natural gas, nuclear power, renewables (largely wind and solar), and coal. The big picture of these four energy sources will be discussed below in decreasing order of importance. Later, the Commonwealth of Pennsylvania will be used as a model to improve a state’s energy mix. First, natural gas is a clear number one energy option in the country, due largely to huge gas availability, flexibility of use, low carbon emissions, and cost –effectiveness.

Natural gas is safe and clean (The Roanoke Times)
The good news for those on all sides of the conversation is that energy production and a healthy environment are not mutually exclusive – they actually go hand in hand. The United States leads the world in both reduction of greenhouse gas emissions, which are near 20-year lows, and in production of oil and natural gas.

Amtran commits to Compressed Natural Gas (Altoona Mirror)
Amtran has committed to Compressed Natural Gas. On Wednesday, the board voted to buy six new CNG buses, contingent on soon-to-be final approval of a federal and a state grant that will pay the full $2.8 million cost.

AGA winter outlook sees consumer gas prices rising 9-11% (Platts)
The American Gas Association is projecting that residential consumers could see a 9-11% increase in natural gas heating bills this winter, compared with the 2015-2016 heating season, although it stressed that those prices will still likely be about the fourth lowest in the last 10 years…The Northeast in particular faces the same problem of prior years — potential capacity constraints when peak load requirements coincide with power generation demand, with weather having a large influence, he said.