ALLENTOWN PA – An 18-inch underground pipeline that currently carries petroleum products north across the mid-section of Montgomery County, and in part beneath properties in an area encompassed by Trappe, Collegeville, Royersford, Spring City and Phoenixville, will be converted to carry natural gas south in an agreement reported by Philly.com.
Allentown-based Talen Energy Corp. is selling its pipeline to a subsidiary of New Jersey Resources for $189 million, so the Wall NJ company can deliver natural gas from Northampton County south to customers in Montgomery, Chester, Delaware, and Philadelphia counties, according to the story by Inquirer staff writer Andrew Maykuth.
The pipeline, and other sections connected to it, currently moves oil or natural gas over the 84-mile stretch. It was built during the 1970s to deliver oil from a former Sunoco refinery in Marcus Hook to power plants owned by Pennsylvania Power & Light Co, and partly converted to natural gas in 1996, Maykuth reported.
The refinery closed. Using oil as a fuel to produce electricity fell out of favor. But the rise of natural gas production from fracking in Pennsylvania shale fields has created new markets that New Jersey Resources hopes to tap. The pipeline could deliver up to 250,000 thousand cubic feet of gas a day.
- Read Maykuth’s story, titled “An oil pipeline encircling Philadelphia gets a new life delivering shale gas” and published Nov. 3 (2017) in The Inquirer, here.
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