PennEast Pipeline Investor Looks to Sell its 10% Ownership Share

New Jersey's largest utility, Public Service Enterprise Group (PSE&G), is shopping its ownership stake in the $1 billion PennEast Pipeline project. Which may sound bad, but isn't. Is PSE&G losing confidence in the project? Not happy with progress (or lack thereof)? Afraid it won't ever get built? No, no and no. According to a company spokesman, the $10 billion PSE&G wants to focus on power projects, not pipelines. A little background and context is helpful. PennEast is largely being driven by Pennsylvania-based UGI, a natural gas and electric utility serving 700,000 customers in 45 counties in Pennsylvania and one county in Maryland. UGI is managing the project, and has the largest ownership stake. Other investors/owners of the project include PSE&G, which has only invested $11 million and owns a 10% stake; NJR Pipeline Company, a subsidiary of New Jersey Resources, an NJ utility; SJI Midstream, a direct subsidiary of South Jersey Industries; Southern Company Gas, a wholly owned subsidiary of Atlanta-based Southern Company, a midstreamer; and Spectra Energy, now a part of Enbridge, yet another pipeline company. Even though PSE&G wants to sell its share of the project for financial reasons, it will remain one of the customers for the PennEast Pipeline when (not if) it gets built...

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