The project known as Commonwealth Pipeline is expected to cost $1bn.
It will be used to transport 800,000 dekatherms of natural gas per day from Pennsylvania’s Marcellus Shale to New York and New England markets.
Capital Energy Ventures and UGI Energy Services are expected to execute precedent agreements to become anchor shippers on the 30-inch pipeline, which will start in Lycoming County, Pennsylvania and run between Harrisburg and Lancaster by crossing the Susquehanna River to York.
The pipeline will connect local markets to Marcellus and reduce transportation costs for customers who majorly procure natural gas from the Gulf coast.
The pipeline is also expected to link with a number of interstate pipelines along its route, allowing greater supply diversity to the mid-Atlantic region and exploring the natural gas produced from the Marcellus.
A non-binding open season for the project is expected to be announced this month for shippers interested in acquiring capacity on the proposed pipeline.
Inergy Midstream will construct and operate the pipeline while Vega Energy Partners will assist in marketing transportation capacity for the pipeline.
Construction could begin in 2014 and the pipeline is scheduled to go into service in 2015.
