A new study from Concentric Energy Advisors (CEA), commissioned by PennEast Pipeline, shows that customers in New Jersey and Eastern Pennsylvania could have saved $893 million in natural gas costs last winter if PennEast’s proposed pipeline had been in place. Downstream Today reports the pipeline would have provided 1 billion cubic feet per day of natural gas to the area. The CEA study estimated the savings that would have resulted from four categories of benefits:
- Gas-fired generation savings ($412 million)
- Oil-fired generation savings ($119 million)
- Industrial customer savings ($256 million)
- Gas customer savings ($106 million)
The report notes that if the pipeline is not built, the gas supply constraints that led to price spikes during the 2013-2014 winter will continue. Retail Energy Buyer observed one such spike during last month’s cold spell.