Study predicts $1.6B economic boost from PennEast Pipeline

A study released by Drexel University shows that the design and construction of the PennEast Pipeline would have a major, positive impact on the economies of the two states, Pennsylvania and New Jersey, in which it would be built and operated.

The study, “PennEast Pipeline Project Economic Impact Analysis,” which was co-authored by Econsult Solutions, found that the proposed project would generate around $1.6 billion in wages, revenue and investments in the regional economy.

The approximately 110-mile, 36-inch diameter PennEast Pipeline would transport about one billion cubic feet of natural gas per day – enough to serve 4.7 million homes. It would run from Dallas, Luzerne County, in northeastern Pennsylvania, to Transco’s pipeline interconnection near Pennington, Mercer County, N.J.

The route takes the pipeline through Carbon, Northampton and Bucks counties

“Using detailed construction and operations budget projections, our team designed a model to estimate the economic impact the design and construction activity, as well as ongoing pipeline operations, would generate,” said Stephen Mullin, president of Econsult Solutions.

Key findings include:

• The design and construction of the project will require an investment of $1.19 billion by PennEast through the end of 2017.
• The multiyear construction phase is expected to result in 12,160 jobs.
• The ongoing operations of the project will generate an annual expenditure of $13.2 million by PennEast, resulting in an expected $23 million in annual economic impact and supporting 98 jobs.

“We find that the immediate construction and labor impacts of the PennEast Pipeline Project are substantial and would greatly benefit local communities through construction, labor and project management jobs,” said Vibhas Madan, professor of economics at Drexel University LeBow College of Business. “Construction and ongoing operations of the project would be economically beneficial to the counties the pipeline would cross, as well as to both states as a whole.”

The economic impact analysis is available at penneastpipeline.com/economic-impact-analysis/.

Source: LVB.com