PennEast is now a part owner in an LNG export facility

PennEast trumpets as loudly as they can to anyone who will listen that this gas is for NJ and PA, period.  They will never, ever, ever, ever (pinky swear, really) EVER let this gas go for export.

Ever.

To help cement our trust on their pinky swear promise, PennEast part-owner New Jersey Resources (NJR) announced this week that they are swapping their interest in the Iroquois Gas Transmission System for an interest in Dominion Midstream Partners instead. NJR stated in their press release that:

“With this agreement, we are exchanging NJR Midstream’s ownership interest in Iroquois for expanded ownership in a variety of midstream assets held by Dominion Midstream Partners,” said Laurence M. Downes, chairman and CEO of New Jersey Resources. “We believe this is an attractive opportunity to diversify our position in the midstream marketplace.”

Formed in 2014, Dominion Midstream Partners, LP owns, operates, develops and acquires natural gas import, storage, regasification, transportation and related assets, including a preferred equity interest in the Cove Point Liquefied Natural Gas (LNG) facility and ownership of Dominion Carolina Gas Transmission, LLC (DGCC). Cove Point provides LNG import, storage and transportation services to the Mid-Atlantic marketplace and DGCC is an interstate natural gas transportation company, delivering natural gas to wholesale and direct industrial customers throughout South Carolina.

The full press release is here:

http://www.njresources.com/news/releases/2015/njr/15-36NJRMidstream.asp

Wait. What? Back that up. To this part:

“including a preferred equity interest in the Cove Point Liquefied Natural Gas (LNG) facility”.

O
M
G

Parse all of the jargon and what we have here is that PennEast part owner NJR is buying a piece of Dominion Cove Point LNG. The very same Dominion Cove Point LNG which is expanding into an LNG export terminal even as I write this.

That’s right. The company who says “this gas is for NJ and PA” just bought a big share in an LNG export company. For those not aware Cove Point LNG export is fully subscribed by heavy industry in Japan and India.

Anyone still have any doubts on where this gas is going?

Published by

Mike Spille

I'm a thinker, an analyzer, a synthesizer. Maybe not in that order. I live in West Amwell NJ with my wife Kristina, our two kids Day and Z, our two dogs Fern and Cinna, and two cats Ponce de Leon and Xavier.

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