The 100-mile PennEast Pipeline, which will start in Luzerne County in northeastern Pennsylvania and end at Transco’s Trenton-Woodbury interconnection in New Jersey, will provide natural gas service for about 4.7 million homes.
The consortium includes AGL Resources, NJR Pipeline, South Jersey Industries, and UGI Energy Services.
Capable of transporting up to 1 billion cubic feet of natural gas per day, the project is expected to create about 2,000 jobs in construction phase.
PSEG Power will have a 12% stake in the pipeline while the other members will each have 22% interest.
PSEG Power president Bill Levis said: "This project will provide New Jersey with reliable access to lower cost, clean natural gas.
"This project will help meet that growing demand by ensuring that New Jersey suppliers have greater and more reliable access to affordable natural gas."
A formal application will be submitted to the Federal Energy Regulatory Commission (FERC) in 2015 by PennEast, which has begun preliminary engineering studies .
Construction of the project is expected to start in 2017.
